CORPORATE AND EMERGENCY SERVICES

Transcription

1 CORPORATE AND EMERGENCY SERVICES Asset Management Plan April 19, 2018

2 EXECUTIVE SUMMARY CONTENTS Page (i) 1. INTRODUCTION 1.1 Overview Plan Development Maintaining the Asset Management Plan Plan Integration STATE OF LOCAL INFRASTRUCTURE 2.1 Scope and Process Capital Asset Overview Asset Condition Analysis Data Accuracy and Completeness EXPECTED LEVELS OF SERVICE 3.1 Scope and Process Current Levels of Service vs. Expected Levels of Service Level of Service Performance Measures ASSET MANAGEMENT STRATEGY 4.1 Scope and Process Risk Assessment Priority Identification Long-Term FINANCING STRATEGY 5.1 Scope and Process Historical Results Financing Strategy Funding Shortfall FUTURE ENHANCEMENTS 6-1

3 APPENDICES CONTENTS Page A DETAILED ASSET INVENTORY A-1 B ASSET MANAGEMENT ASSUMPTIONS B-1 C DATA VERIFICATION AND CONDITION ASSESSMENT POLICY C-1 D SCENARIO ANALYSIS CAPITAL FORECASTS D-1 E TAX SUPPORT ASSET MANAGEMENT STRATEGY & FINANCING STRATEGY E-1 F WATER ASSET MANAGEMENT STRATEGY & FINANCING STRATEGY F-1 G WASTEWATER ASSET MANAGEMENT STRATEGY & FINANCING STRATEGY G-1 H SOLID WASTE ASSET MANAGEMENT STRATEGY & FINANCING STRATEGY H-1 I ASSET SUMMARIES I-1

4 EXECUTIVE SUMMARY

5 (i) EXECUTIVE SUMMARY This report contains the Asset Management Plan for The District Municipality of Muskoka (District) and has been organized as follows: Chapter 1: Introduction; Chapter 2: State of Local Infrastructure; Chapter 3: Expected Levels of Service; Chapter 4: Asset Management Strategy; Chapter 5: Financing Strategy; and Chapter 6: Future Enhancements. The state of local infrastructure chapter provides an overview of the capital assets owned by the District. This includes detailed information on the District s asset inventory, including asset attributes, accounting valuations, replacement costs, useful life, age and asset condition. This information provides the foundation for other sections of the asset management plan. The total replacement cost for District assets are as follows: Asset Description 2016 Replacement Cost $ Share of Total Replacement Cost Roads, bridges, major culverts $1,275,103, % Facilities, fleet and equipment 88,128, % Airport 19,953, % Port Carling Locks 6,281, % Hauled Sewage 10,589, % Water 602,038, % Wastewater 596,756, % Waste Management 33,624, % Total $2,632,475, % The condition ratings of the District assets are provided in this chapter as well. Overall, 66% of District assets are assessed in Good or Very Good condition as shown in the chart below:

6 (ii) Overall Condition of Assets The expected levels of service chapter combines both descriptions/comments as well as performance measures in establishing service levels. This is an area that will need to be updated and expanded to be compliant with regulations coming into effect by July 1, The asset management strategy provides a long term operating and capital forecast for asset related costs, indicating the requirements for maintaining, rehabilitating, replacing/disposing and expanding the District s assets, while moving towards the specified expected levels of service identified above. The goal of the asset management strategy is to have the District in (or moving towards) a sustainable asset management position over the forecast period. Staff are recommending that the capital needs identified in the asset management analysis be phased in over the 20 year forecast period as reflected in scenario 2 of chapter 4. The total capital replacement needs identified in this chapter are: Asset Description Roads, bridges, major culverts Other tax supported assets Water Wastewater Waste Management Total 20 Year Capital Needs $515.7 million million million million 47.1 million $1,113.9 million This recommended scenario requires the deferral of projects identified as an immediate need, but is necessary to create a financially feasible financing plan. The total value of immediate capital needs being phased in is $77.5 million.

7 (iii) The financing strategy identifies a funding plan for the asset management strategy, including a review of historical results and recommendations with respect to the required amounts and types of funding (revenue) annually. Also, any infrastructure funding deficits/shortfalls are identified and recommendations are made regarding potential approaches to reduce and mitigate the shortfall over the forecast period. As identified in chapter 5, the current level of funding for asset replacement and renewal at the District will not sufficiently fund capital needs or close the infrastructure funding gap. The following chart shows the current annual capital funding, optimal funding, the funding shortfall and the necessary increase in capital funding to achieve sustainability within the 20 year forecast period. Asset Description Current Annual Capital Funding Optimal Annual Funding Annual Funding Shortfall Annual Capital Funding Increase Necessary Roads, bridges and major culverts $15.4 million $37.0 million $21.6 million 5.01% Other tax supported assets $5.4 million $7.4 million $2.0 million 1.97% Water $3.4 million $12.8 million $9.4 million 5.09% Wastewater $3.5 million $12.8 million $9.3 million 6.00% years 1 to 5; 3.74% years 6 to 20 Waste Management $2.5 million $2.5 million No shortfall 1.70% Total $30.2 million $72.5 million $42.3 million If the District makes the annual capital funding increases noted above, the asset management strategy will be fully funded within the 20 year forecast period. However, this phased-in approach does defer capital replacements within the 20 year forecast period. In the event that certain deferred replacements result in increased risks and/or projected asset failures, further funding may be required to address the costs associated with accelerating replacement timelines and meeting legislative requirements. Overall, this asset management plan is a tool to be used by District staff for capital and financial decision making. It can be tied to various existing reports (such as the District s budget, official plan and strategic planning reports) to ensure the asset management plan can be updated to reflect any changes in District priorities. There are a number of future enhancements that have been identified in chapter 6 that will improve the quality and efficiency of future updates and ensure compliance with future regulatory requirements.

8 1. INTRODUCTION

9 INTRODUCTION 1.1 Overview The main objective of an asset management plan is to use a municipality s best available information to develop a comprehensive long term plan for capital assets. In addition, the plan should provide sound methodologies and support in order to improve the accuracy of the plan on a go forward basis. Watson & Associates Economists Ltd. (Watson) was retained by the District in 2013 to prepare an asset management plan that included Roads, Bridges, Water and Wastewater assets, which was approved in June of This plan includes an update to the original plan and has been expanded to include Solid Waste, Hauled Sewage, Port Carling Locks, Airport, Facilities and Fleet and Equipment. This plan is intended to be a tool for District staff to use during various decision making processes, including the annual budgeting process and capital grant application processes. This plan will serve as a road map for sustainable infrastructure planning going forward. The District s goals and objectives with respect to their capital assets relate to the level of service being provided to District residents. Services should be provided at expected levels, as defined within this asset management plan. District infrastructure and other capital assets should be maintained at condition levels that provide a safe and functional environment for its residents. Therefore, the asset management plan and its implementation will be evaluated based on the District s ability to meet these goals and objectives. 1.2 Plan Development The asset management plan leverages the District s asset database information, staff input and asset management principles. The development of the District s asset management plan was based on the steps summarized below: 1) Develop a complete listing of capital assets to be included in the plan, including attributes such as size/material type, useful life, age, accounting valuation and current valuation. Update valuation to current dollars, where required, using applicable inflationary indices. 2) Assess current condition of the assets, based on a combination of staff input, existing asset data/reports and an asset age based condition analysis. 3) Assess the risk of asset failure for each asset, based on determining the probability of each asset failing, as well as the consequence of the asset failing. This risk analysis identifies priority projects for inclusion in the asset management plan, as well as asset risk levels that require mitigation.

10 1-2 4) Determine and document current levels of service, as well as expected levels of service, based on discussions with District staff. 5) Prepare an asset management strategy (i.e. operating and capital forecast) based on the asset inventory, identified priorities, forecast scenarios, and level of service analysis discussed above. 6) Determine a financing strategy to support the asset management strategy, thus determining how the operating and capital related expenditures would be funded over the forecast period as well as the financial policies to be considered moving forward. 7) Prepare a comprehensive Asset Management Plan final report. 1.3 Maintaining the Asset Management Plan Under the new Ontario Regulation 588/17 made under the Infrastructure for Jobs and Prosperity Act, 2015, every municipality is required to prepare an asset management plan for core infrastructure assets by July 1, 2021 and for all other municipal infrastructure assets by July 1, A review and update of the asset management plan is required at least five years after the year in which the plan is completed and at least every five years thereafter. The asset management plan should be updated as the capital needs and priorities of the District change. This can be accomplished in conjunction with specific asset legislative requirements as well as the District s budget process. District staff should have the tools available to perform updates to the plan when needed. When updating the asset management plan, note that the state of local infrastructure, expected levels of service, asset management strategy and financing strategy are integrated and impact each other. Looking at these components in reverse order, the financing strategy outlines how the asset management strategy will be funded. The asset management strategy illustrates the costs required to maintain expected levels of service at a sustainable level. The expected levels of service component summarizes and links each service area to specific assets contained in the state of local infrastructure section and thus determines how these assets will be used to provide expected service levels. While this report covers a forecast period of 20 years, the full lifecycle of the District s assets included in this plan was considered in the calculations. It is suggested that more focus and attention be put on the first 10 years of the asset management plan, to ensure accurate capital planning in the short term.

11 Plan Integration The municipal environment is a continually changing and demanding environment when it comes to legislation and other responsibilities. Integrating the asset management plan with the District s budget process can make updates in both areas more efficient. With respect to integrating the District s budget process with asset management planning, both require a projection of capital and operating costs of a future period. The budget outlines total operating and capital requirements of the District, while the asset management plan focuses in on specific asset related requirements. With this link to the annual budget, the budget update process can become an asset management plan update process. Further integration into other District financial/planning documents would assist in ensuring the ongoing accuracy of the asset management plan, as well as the integrated financial/planning documents. The asset management plan has been developed to allow linkages to documents such as: Development Charge Background Study and by-law; Official Plan; Water and Wastewater Rate Study; Strategic Planning Reports; Fiscal Impact/Operating Studies; Insurance valuations and records; Long Term Plans for growth, transportation, biosolids, accessibility and housing; Purchasing by-law; Investment policy; and User fee by-law.

12 2. STATE OF LOCAL INFRASTRUCTURE

13 STATE OF LOCAL INFRASTRUCTURE 2.1 Scope and Process This section of the plan provides an opportunity to develop a greater understanding of the capital assets owned by the District. The state of local infrastructure analysis includes: An asset database documenting asset types, sub-types including quantities, materials and other similar asset attributes; Financial accounting valuation; Replacement cost valuation; Asset condition information and analysis; Data Verification and Asset Condition policies; and Documentation of assumptions made in creating the asset inventory. The District has a detailed inventory listing, created for both capital planning and PSAB 3150 purposes. This asset inventory is updated annually and was used as a starting point in fulfilling the requirements of this report. Additional discussions with District staff were used to supplement the asset inventory during this process and provide current replacement cost valuations as well as attributes such as useful life, age, and expected date replacement.

14 Capital Asset Overview The District presently owns and manages road, bridge and culvert assets with a 2016 replacement value of approximately $1.3 billion and other tax supported assets with a 2016 replacement value of approximately $125.0 million. Tables 2-1 and 2-2 outline the breakdown of these totals and Figures 2-1 and 2-2 illustrates the distribution. Table Tax Supported Assets - Roads, Bridges and Major Culverts Figure Road, Bridge and Major Culvert Asset Distribution Based on Replacement Cost

15 2-3 Table Other Tax Supported Assets Figure Other Tax Supported Asset Distribution Based on Replacement Cost

16 The District also owns and manages the following rate supported assets included in this plan. 2-4 Water assets with a 2016 replacement value of approximately $602.0 million. Table 2-3 outlines the breakdown of this total and Figure 2-3 illustrates the distribution. Table Water Assets Figure Water Asset Distribution Based on Replacement Cost

17 Wastewater assets with a 2016 replacement value of approximately $596.8 million. Table 2-4 outlines the breakdown of this total and Figure 2-4 illustrates the distribution. 2-5 Table Wastewater Assets Figure Wastewater Asset Distribution Based on Replacement Cost

18 Waste management assets with a 2016 replacement value of approximately $33.6 million. Table 2-5 outlines the breakdown of this total and Figure 2-5 illustrates the distribution. 2-6 Table Waste Management Assets Figure Waste Management Asset Distribution Based on Replacement Cost A detailed capital asset inventory is contained in Appendix A. Assumptions pertaining to the asset inventory were documented as part of the asset management process and are shown in Appendix B.

19 Asset Condition Analysis Each asset is tracked based on estimated total useful life and remaining service life. Using this information, an age analysis of the District s assets can assist in identifying potential areas of focus for the asset management plan. Total useful life and remaining service life for each capital asset is documented in Appendix A. While this analysis can be useful in looking at the overall age characteristics of specific assets, asset condition (see below) will assist in providing a more accurate assessment of assets reaching the end of their useful life. Including condition assessments in the asset management plan provides for a higher level of accuracy than simply relying on useful life assumptions, especially when it comes to older, highly used or more financially significant assets. Condition assessments can provide more realistic estimates of remaining service life, which can then be used to establish rehabilitation or replacement schedules. Condition ratings were derived from a combination of data provided by staff and an asset age analysis (which involves estimating an asset s condition based on a comparison of age to useful life). Ratings range as follows: Figure 2-6 shows a breakdown of the overall condition of the District assets and indicates that 66% of District assets are assessed in good or very good condition:

20 2-8 Figure 2-6 Further discussion of condition assessments will take place in Chapter 4 when assessing asset risk and identifying asset priorities. Furthermore, detailed asset conditions are documented in Appendix A to this report. It is recommended that these condition assessments be updated as new information becomes available. 2.4 Data Accuracy and Completeness An important element of this asset management plan is ensuring that tools and procedures are in place to maintain accuracy and completeness of the asset data and calculations moving forward. As time passes, assets are used, maintained, improved, disposed of, and replaced. All of these lifecycle events can trigger changes to the asset database used within the asset management plan. Therefore, tools and procedures are essential to ensure the asset data remains accurate and complete. Please refer to Appendix C to this report for the Data Verification and Condition Assessment Policy for the District. This policy illustrates how the asset data will be updated and verified going forward. This includes the timing of condition assessments for each asset area, what should be included within the condition assessment procedures, and the source of the condition data.

21 3. EXPECTED LEVELS OF SERVICE

22 EXPECTED LEVELS OF SERVICE 3.1 Scope and Process A level of service (LOS) analysis, as required under the Provincial asset management guideline, gives the District an opportunity to document the level of service that is currently being provided and compare it to the level of service that is expected. This can be done through a review of current practices and procedures, an examination of trends or issues facing the District, or through an analysis of performance measures and targets that staff can use to measure performance. Expected LOS can be impacted by a number of factors, including: Legislative requirements; Strategic planning goals and objectives; Resident expectations; Council expectations; Staff expectations (based on professional knowledge and experience); and Financial or resource constraints. The previous task of determining the state of the District s local infrastructure establishes the asset inventory and condition, as well as asset management policies and principles to guide the refinement and upkeep of asset infrastructure. The LOS analysis will utilize this information and factor in the impact of asset service level targets. It is important to document an expected LOS that is realistic to the District. It is common to strive for the highest LOS, however these service levels usually come at a cost. It is also helpful to consider the risk associated with a certain LOS. Therefore, expected LOS should be determined in a way that balances both level of investment and associated risk to the District. 3.2 Current Levels of Service versus Expected Levels of Service The District s current LOS has resulted in the current state of infrastructure discussed in chapter 2. The current LOS also relates to the risk assessment discussed in later report sections. Regarding the cost of current LOS, the District has established an operating and capital budget for the current year that includes the cost of providing this LOS to residents. In moving from the current LOS to an expected LOS, consideration has to be made for the associated cost (or impact on the District s current budget). The table below outlines broad LOS descriptions, with current LOS and expected LOS being the same. This analysis was documented through discussions with District staff. It is anticipated that District staff will further refine this analysis in future updates to the asset management plan. As this analysis relates to

23 3-2 services that are guided by legislative requirements and standards, these legislative requirements become a significant component of the LOS analysis. Table 3-1 Level of Service Analysis

24 Table 3-1 (cont.) Level of Service Analysis 3-3

25 3-4 Table 3-1 (cont.) Level of Service Analysis 3.3 Level of Service Performance Measures As mentioned above, using performance measures in the LOS review can also be helpful in measuring the District s goals and objectives when it comes to asset management. The District currently tracks specific performance measures which the province requires through the annual Financial Information Return (FIR) submission. The following table provides a summary of the specific performance measures relating to capital asset effectiveness.

26 3-5 Table 3-2 Performance Measures Analysis The District will continue to calculate and monitor these performance measures, both for financial reporting and asset management purposes. As the District s asset management plan evolves over time, new performance measures can be introduced to further measure the LOS being provided in each service area.

27 4. ASSET MANAGEMENT STRATEGY

28 ASSET MANAGEMENT STRATEGY 4.1 Scope and Process The asset management strategy provides the recommended course of actions required to maintain (or move towards) a sustainable asset funding position while delivering the expected levels of service discussed in the previous chapter. The course of actions, when combined together, form a long-term operating and capital forecast that includes: a) Non-infrastructure solutions: reduce costs and/or extend expected useful life estimates; b) Maintenance activities: regularly scheduled activities to maintain existing useful life levels, or repairs needed due to unplanned events; c) Renewal/Rehabilitation: significant repairs or maintenance planned to increase the useful life of assets; d) Replacement/Disposal: complete disposal and replacement of assets, when renewal or rehabilitation is no longer an option; and e) Expansion: given planned growth as outlined in the District s Development Charge Background Study, other expansion or due to the introduction of new services. Priority identification becomes a critical process during the asset management strategy development. Priorities have been determined based on assessment of the overall risk of asset failure, which is determined by looking at both the probability of an asset failing, as well as the consequences of failure. The consequences of the District not meeting desired levels of service must also be considered in determining risk. As discussed in chapter 3, moving to expected levels of service results in both operating and capital budget impacts over the 20 year forecast period. This has to be taken into consideration, with the overall objective of reaching sustainable levels while mitigating risk. 4.2 Risk Assessment The risk of an asset failing is defined by the following calculation: Risk of Asset Failure = Probability of Failure X Consequence of Failure Probability of failure has been linked to the condition assessment for each of the assets. The following table outlines the probability factor tied to each condition rating for all assets, with the exception of roads, where condition ratings were based on Time of Need from the Roads Needs study:

29 4-2 Table 4-1 Probability of Failure Matrix Consequence of failure has been determined by examining each asset type separately. Consequence refers to the impact on the District if a particular asset were to fail. Types of impacts include the following: Cost Impacts: the cost of failure to the District (i.e. capital replacement, rehabilitation, fines & penalties, damages, etc.); Social impacts: potential injury or death to residents or District staff; Environmental impacts: the impact of the asset failure on the environment; Service delivery impacts: the impact of the asset failure on the District s ability to provide services at desired levels; and Location impacts: the varying impact of asset failure based on the asset s location within the District. Each type of consequence was discussed with District staff. Consequence of failure was determined by using the information contained in Table 4-2 for each asset type with the exception of road, bridge and major culvert assets, where considerations were based on traffic counts (AADT). Levels of impact were documented based on a rating ranging from significant to insignificant. With both probability of failure and consequence of failure documented, total risk of asset failure was determined using the matrix contained in Table 4-3. Total risk has been classified under the following categories: Extreme Risk (E): risk well beyond acceptable levels; High Risk (H): risk beyond acceptable levels; Medium Risk (M): risk at acceptable levels, monitoring required to ensure risk does not become high; and Low Risk (L): risk at or below acceptable levels.

30 4-3 Table 4-2 Consequence of Failure Matrix Table 4-3 Total Risk of Asset Failure Matrix Risk levels can be reduced or mitigated through planned maintenance, rehabilitation and/or replacement. An objective of this asset management plan is to reduce risk levels where they are deemed to be too high, as well as ensure assets are maintained in a way that maintains risk at acceptable levels. Please refer to Appendix A for the detailed risk assessment for each of the District s capital assets. It is recommended that this risk assessment be refined further by District staff in the future. 4.3 Priority Identification Through discussions with District staff and review of the asset risk of failure assessment, there are a number of assets/categories identified as being priorities of the District. These projects are noted in the appendices under the individual asset inventories in Appendix A.

31 Long-term For many years, lifecycle costing has been used in the field of maintenance engineering and to evaluate the advantages of using alternative materials in construction or production design. The method has gained wider acceptance and use recently in the management of capital assets. By definition, lifecycle costs are all the costs which are incurred during the lifecycle of a capital asset, from the time it is purchased or constructed, to the time it is taken out of service for disposal. The stages which an asset goes through in its lifecycle are as follows: Figure 4-1 Asset Lifecycle Diagram Purchase Install Commission Investment Costs Operate Maintain Monitor Throughout Life of Assets To End of Useful Life Operating Costs Removal / Decommission Disposal Disposal Costs In defining the long-term forecast for the District s asset management strategy, costs incurred through an asset s lifecycle were considered and documented. Asset Replacement Analysis In forecasting the District s asset replacement needs, comparisons were made between the following scenarios: Scenario 1: Replacement forecast based on Calculated Risk ; o Asset inventories provided by District staff were analyzed based on multiple variables to determine risk of asset failure using the Risk of Asset Failure Matrix shown in Table 4-3. Remaining Service Life (RSL) was then determined using time of need from the road needs study and the ranges shown in Appendix B for all other assets. Expansion needs were layered into the forecast with future projects equally distributed through

32 4-5 Scenario 2: Replacement forecast based on Phased-In Approach ; o Adjustments were made to the first scenario to allow for a phased-in approach to capital needs in order to gradually increase the annual investment in assets over time. Scenario 1: Capital forecast based on Calculated Risk District staff provided the Roads Needs study and OSIM reports for Road, Bridge and Major Culvert assets, and detailed asset inventories for Water and Wastewater infrastructure which included characteristics such as age, useful life, material, and condition. Other assets utilized a starting inventory from PSAB 3150 data and/or insurance valuations. Risk of asset failure was determined using the Risk of Asset Failure matrix from Table 4-3. Remaining Service Life (RSL) was then determined using the road needs study and the ranges shown in Appendix B. Figures 4-2 to 4-6 show the 20 year forecast under this scenario. Expansion needs were layered into the forecast. Over the 20 year forecast period, the total capital replacement needs are as follows: $521.6 million in road, bridge and major culvert capital; $139.4 million in other tax supported capital; $179.6 million in water capital $235.6 million in wastewater capital; and $45.3 million in waste management capital. Figure Year (Inflated) Road, Bridge and Major Culvert Assets Scenario 1 Based on Calculated Risk

33 4-6 Figure Year (Inflated) Other Tax Supported Assets Scenario 1 Based on Calculated Risk Figure Year (Inflated) Water Assets Scenario 1 Based on Calculated Risk

34 4-7 Figure Year (Inflated) Wastewater Assets Scenario 1 Based on Calculated Risk Figure Year (Inflated) Waste Management Assets Scenario 1 Based on Calculated Risk Scenario 1 has identified immediate needs of $77.5 million, with roads infrastructure comprising 52.6% of this amount. The immediate needs represent assets identified as high risk due to condition and remaining service life, and previously deferred replacement needs. Figure 4-7 shows the immediate needs for each asset area.

35 4-8 Figure 4-7 Immediate Needs Scenario 2: Capital forecast based on Phased-in Approach Under this scenario, capital needs identified from the asset management analysis in the first scenario were phased in over the 20 year forecast period. Expansion related needs have also been layered into the forecast. Figures 4-8 to 4-12 show the 20 year forecasts under this scenario. Over the 20 year forecast period, the total capital replacement needs are as follows: $515.7 million in road, bridge and major culvert capital; $139.1 million in other tax supported capital; $176.1 million in water capital; $235.9 million in wastewater capital; and $47.1 million in waste management. This scenario requires deferral of projects identified in scenario 1, which is necessary to create a financially feasible financing program, but does come with some inherent risk: The risk of asset failure increases the more that its rehabilitation/replacement is deferred; The deferred capital projects will cost more, given capital inflation adjustments over time; Capital deferrals may cause the levels of service being provided to reduce, as assets may reach lower condition levels; and Any found funding or efficiencies in costs in future years should be utilized to catch up on deferred capital.

36 4-9 Figure Year (Inflated) Road, Bridge and Major Culvert Assets Scenario 2 Phased In Approach Figure Year (Inflated) Other Tax Supported Assets Scenario 2 Phased In Approach

37 4-10 Figure Year (Inflated) Water Assets Scenario 2 Phased In Approach Figure Year (Inflated) Wastewater Assets Scenario 2 Phased In Approach

38 4-11 Figure Year (Inflated) Waste Management Assets Scenario 2 Phased In Approach Maintenance, Non-Infrastructure Solutions, Renewal & Rehabilitation For scenarios 1 and 2 to be feasible, the current level of service discussed in Chapter 3 are required in order to effectively maintain and rehabilitate the assets as needed. The financing strategy discussed in the next Chapter will incorporate the current level of service into the recommended financing analysis.

39 5. FINANCING STRATEGY

40 FINANCING STRATEGY 5.1 Scope and Process The financing strategy outlines the suggested financial approach to funding the recommended asset management strategy outlined in Chapter 4, while utilizing the District s existing budget structure. This section of the asset management plan includes: Annual expenditure forecasts broken down by: o Maintenance/non-infrastructure solutions; o Renewal/rehabilitation activities; o Replacement/disposal activities; and o Expansion activities. Actual expenditures in the above named categories for 2014 and 2015 and budget expenditures for 2016; A breakdown of annual funding/revenue by source; Identification of the funding shortfall, including how the impact will be managed; and All key assumptions are documented within Appendix B. The long-term financing strategy forecast (including both expenditure and revenue sources) was prepared, consistent with the District s departmental budget structure, so that it can be used in conjunction with the annual budget process. Various financing options, including taxation, reserves, reserve funds, debt, user fees and grants were considered and discussed with District staff during the process. Figure 5-1 provides a visual representation of how various financing methods can be used for both initial asset purchases, as well as asset replacements. For asset management strategy scenarios 1 and 2, a detailed twenty (20) year plan was generated. The plan identifies specific maintenance & non-infrastructure solutions, renewal & rehabilitation, replacement & disposal, and expansion activities required for the 20 year forecast period as described in Chapter 4.

41 5-2 Figure 5-1 Financing Methods of Lifecycle Costs New Assets Financing Methods Replacement Assets Purchase Install Commission Development Charges (Growth) Reserves/Reserve Funds Debentures Taxation User Fees Grants Other Purchase Install Commission Operate Maintain Monitor (Throughout Life of Assets) (To End of Useful Life) Tax Supported Operating Budget User Fees Operating Budget Operate Maintain Monitor (Throughout Life of Assets) (To End of Useful Life) Removal / Decommission Disposal Proceeds on Disposal Funding of Disposal / Decommissioning Costs Removal / Decommission Disposal 5.2 Historical Results Table 5-1 outlines the tax supported, water, wastewater and waste management historical maintenance/non-infrastructure costs for 2014 and 2015 and the budgeted amounts for All maintenance for assets was funded through taxation revenue for the tax supported assets, and taxation and user fee rates for water, wastewater and waste management. Table 5-1 Historical Results Maintenance and Non-Infrastructure Solutions

42 Tables 5-2 to 5-6 outline the historical capital results for 2014 and 2015 and budgeted capital results for 2016 including renewal/rehabilitation, replacement/disposal, and expansion. The capital funding includes the use of development charges for growth (expansion) related costs, reserve/reserve funds, gas tax funds, area municipal contributions, sale of asset funds, as well as grants. 5-3

43 5-4 Table 5-2 Road, Bridge and Major Culvert Historical Results Renewal/Rehabilitation, Replacement/Disposal & Expansion Table 5-3 Tax Supported Historical Results Renewal/Rehabilitation, Replacement/Disposal & Expansion

44 5-5 Table 5-4 Water Historical Results Renewal/Rehabilitation, Replacement/Disposal & Expansion Table 5-5 Wastewater Historical Results Renewal/Rehabilitation, Replacement/Disposal & Expansion

45 5-6 Table 5-6 Waste Management Historical Results Renewal/Rehabilitation, Replacement/Disposal & Expansion 5.3 Financing Strategy A financing strategy has been provided for the recommended asset management strategy, Scenario 2, which represents a phased-in approach to the District capital replacement needs. Further refinements to the asset inventory and level of service analysis are needed to make this scenario more accurate, however the current results are provided within this report, for future consideration. Road, Bridge and Major Culvert Assets - Scenario 2 Table 5-7 shows the tax supported expenditure forecast for maintenance, renewal/rehabilitation, replacement/disposal and expansion for road, bridge and major culvert assets for the first 10 years of the forecast period. While this summary only shows high level cost classifications, further detail (including the full 20-year forecast) can be obtained from Appendix E.

46 5-7 Table 5-7 Road, Bridge and Major Culvert Expenditure Summary Items in Table 5-7 labelled as LOS Adjustment refer to the level of service analysis discussed in Chapter 3. Since staff has assumed no change in LOS, this row is nil. Expansion related costs labelled as DC related refer to projects identified in the District s Development Charge Background Study (please refer to Appendix E). Table 5-8 summarizes the recommended strategy to finance the asset related costs identified in Table 5-7. Table 5-8 Breakdown of Annual Road, Bridge and Major Culvert Funding (Revenue) by Source These lifecycle costs are being recovered through several methods: Taxation funding is suggested for all maintenance costs, as well as level of service adjustment related costs related to operations. Other Contributions include area municipal contributions as indicated in the District s capital forecast. The portion of newly acquired or constructed assets that are growth (DC) related are shown as financed by development charges. The District will be dependent upon maintaining healthy capital reserves/reserve funds in order to provide the remainder of the required lifecycle funding over the forecast period. This will require the District to proactively increase amounts being transferred to these capital reserves during the annual budget process.

47 5-8 While the annual funding requirement may fluctuate, it is important for the District to implement a consistent, yet increasing annual investment in capital so that the excess annual funds can accrue in capital reserve funds. In order to fund the recommended asset requirements over the forecast period using the District s own available funding sources (i.e. using taxation, grants, other contributions and reserves/reserve funds), an increase in the District s taxation levy of 5.01% per year would be required for each year of the forecast period. This increase assumes that all departmental operating accounts would increase at 1.5% annually. Please note that this analysis only incorporates the capital needs for the assets listed in this plan. Also, if other funding sources become available or if maintenance and rehabilitation practices allow for the deferral of capital works, then the impact on the District s taxation levy would decrease. Other Tax Supported Assets - Scenario 2 Table 5-9 shows the tax supported expenditure forecast for maintenance, renewal/rehabilitation, replacement/disposal and expansion for the first 10 years of the forecast period. While this summary only shows high level cost classifications, further detail (including the full 20-year forecast) can be obtained from Appendix E. Table 5-9 Other Tax Supported Expenditure Summary Items in Table 5-9 labelled as LOS Adjustment refer to the level of service analysis discussed in Chapter 3 and are nil since staff has assumed that current LOS are maintained. Expansion related costs labelled as DC related refer to projects identified in the District s Development Charge Background Study (please refer to Appendix E).

48 Table 5-10 summarizes the recommended strategy to finance the asset related costs identified in Table Table 5-10 Breakdown of Other Tax Supported Annual Funding (Revenue) by Source These lifecycle costs are being recovered through several methods: Taxation funding is suggested for all maintenance costs, as well as level of service adjustment related costs related to operations. Grant funding is used when funding is approved and amount known. Other Contributions include area municipal contributions as indicated in the District s capital forecast. The portion of newly acquired or constructed assets that are growth (DC) related are shown as financed by development charges. The District will be dependent upon maintaining healthy capital reserves/reserve funds in order to provide the remainder of the required lifecycle funding over the forecast period. This will require the District to proactively increase amounts being transferred to these capital reserves during the annual budget process. While the annual funding requirement may fluctuate, it is important for the District to implement a consistent, yet increasing annual investment in capital so that the excess annual funds can accrue in capital reserve funds. In order to fund the recommended asset requirements over the forecast period using the District s own available funding sources (i.e. using taxation, grants, other contributions and reserves/reserve funds), an increase in the District s taxation levy of 1.97% per year would be required for each year of the forecast period. This increase assumes that all departmental operating accounts would increase at 1.5% annually. Please note that this analysis only incorporates the capital needs for the assets listed in this plan. Also, if other funding sources become available or if maintenance and rehabilitation practices allow for the deferral of capital works, then the impact on the District s taxation levy would decrease.

49 5-10 Water - Scenario 2 Table 5-11 shows the water expenditure forecast for maintenance, renewal/rehabilitation, replacement/disposal and expansion for the first 10 years of the forecast period. While this summary only shows high level cost classifications, further detail (including the full 20-year forecast) can be obtained from Appendix F. Table 5-11 Water Expenditure Summary Items in Table 5-11 labelled as LOS Adjustment refer to the level of service analysis discussed in Chapter 3 and are nil since staff has assumed that current LOS will be maintained. Expansion related costs labelled as DC related refer to projects identified in the District s Development Charge Background Study (please refer to Appendix F). Table 5-12 summarizes the recommended strategy to finance the asset related costs identified in Table Table 5-12 Breakdown of Annual Water Funding (Revenue) by Source These lifecycle costs are being recovered through several methods: Water taxation and user fee rate revenue is suggested for all maintenance costs, as well as level of service adjustment related costs related to operations.

50 5-11 The portion of newly acquired or constructed assets that are growth (DC) related are shown as financed by development charges. Gas Tax funding has been shown as a stable and long-term funding source for eligible capital projects. The District will be dependent upon maintaining healthy capital reserves/reserve funds in order to provide the remainder of the required lifecycle funding over the forecast period. This will require the District to proactively increase amounts being transferred to these capital reserves during the annual budget process. While the annual funding requirement may fluctuate, it is important for the District to implement a consistent, yet increasing annual investment in capital so that the excess annual funds can accrue in capital reserve funds. In order to fund the recommended asset requirements over the forecast period using the District s own available funding sources (i.e. using water rate revenue and reserves/reserve funds), an increase in revenue (i.e. combination of growth/water consumption and rate increases) of 5.09% per year would be required for each year of the forecast period. This increase assumes that all water operating accounts would increase at 1.5% annually. However, if other funding sources become available (i.e. grant funding) or if maintenance and rehabilitation practices allow for the deferral of capital works, then the impact on District water rate revenue would decrease. Wastewater - Scenario 2 Table 5-13 shows the wastewater expenditure forecast for maintenance, renewal/rehabilitation, replacement/disposal and expansion for the first 10 years of the forecast period. While this summary only shows high level cost classifications, further detail (including the full 20-year forecast) can be obtained from Appendix G. Table 5-13 Wastewater Expenditure Summary

51 Items in Table 5-13 labelled as LOS Adjustment refer to the level of service analysis discussed in Chapter 3 and are nil as staff has assumed that current LOS are maintained. Expansion related costs labelled as DC related refer to projects identified in the District s Development Charge Background Study (please refer to Appendix G) Table 5-14 summarizes the recommended strategy to finance the asset related costs identified in Table Table 5-14 Breakdown of Annual Wastewater Funding (Revenue) by Source These lifecycle costs are being recovered through several methods: Wastewater taxation and user fee rate revenue is suggested for all maintenance costs, as well as level of service adjustment related costs related to operations. Grant funding is used when funding is approved and the amount known. Ontario Community Infrastructure Fund (OCIF) proceeds have been shown as a funding source for the first five (5) years of the forecast period. Other Contributions include area municipal contributions as indicated in the District s capital forecast. Debt financing is shown as required in years where significant capital needs are identified. This may be a combination of internal and external debt. The portion of newly acquired or constructed assets that are growth (DC) related are shown as financed by development charges. Gas Tax funding has been shown as a stable and long-term funding source for eligible capital projects. The District will be dependent upon maintaining healthy capital reserves/reserve funds in order to provide the remainder of the required lifecycle funding over the forecast period. This will require the District to proactively increase amounts being transferred to these capital reserves during the annual budget process. While the annual funding requirement may fluctuate, it is important for the District to implement a consistent, yet increasing annual investment in capital so that the excess annual funds can accrue in capital reserve funds.

52 5-13 In order to fund the recommended asset requirements over the forecast period using the District s own available funding sources (i.e. using wastewater rate revenue, confirmed grants, reserves/reserve funds and debentures), an increase in revenue (i.e. combination of growth/wastewater flows and rate increases) of 6.00% per year would be required for the first 5 years of the forecast period and 3.74% for the remaining 15 year period. This increase assumes that all wastewater operating accounts would increase at 1.5% annually. However, if other funding sources become available or if maintenance and rehabilitation practices allow for the deferral of capital works, then the impact on District wastewater rate revenue would decrease. Waste Management - Scenario 2 Table 5-15 shows the waste management expenditure forecast for maintenance, renewal/rehabilitation, replacement/disposal and expansion for the first 10 years of the forecast period. While this summary only shows high level cost classifications, further detail (including the full 20-year forecast) can be obtained from Appendix H. Table 5-15 Waste Management Expenditure Summary Items in Table 5-15 labelled as LOS Adjustment refer to the level of service analysis discussed in Chapter 3 and are nil as staff has assumed the current LOS will be maintained.

53 Table 5-16 summarizes the recommended strategy to finance the asset related costs identified in Table Table 5-16 Breakdown of Annual Waste Management Funding (Revenue) by Source These lifecycle costs are being recovered through several methods: Solid Waste taxation and user fee rate revenue is suggested for all maintenance costs, as well as level of service adjustment related costs related to operations. The District will be dependent upon maintaining healthy capital reserves/reserve funds in order to provide the remainder of the required lifecycle funding over the forecast period. This will require the District to proactively increase amounts being transferred to these capital reserves during the annual budget process. While the annual funding requirement may fluctuate, it is important for the District to implement a consistent, yet increasing annual investment in capital so that the excess annual funds can accrue in capital reserve funds. In order to fund the recommended asset requirements over the forecast period using the District s own available funding sources (i.e. using solid waste rate revenue and reserves/reserve funds), an increase in revenue of 1.70% per year would be required for each year of the forecast period. This increase assumes that all solid waste operating accounts would increase at 1.5% annually. However, if other funding sources become available (i.e. grant funding) or if maintenance and rehabilitation practices allow for the deferral of capital works, then the impact on District solid waste rate revenue would decrease. 5.4 Funding Shortfall Assuming the District maintains adequate capital reserve funds, the recommended asset management strategy discussed in Chapter 4 will be fully funded. However, the recommended asset management strategy does defer capital replacements within the 20-year forecast period. In the event that certain deferred replacements result in increased risks and/or projected asset

54 5-15 failures, further funding may be required to address the costs associated with accelerating replacement timelines and meeting legislative requirements. A fundamental approach to calculating the cost of using a capital asset and for the provision of the revenue required when the time comes to retire and replace it is the sinking fund method. This method first estimates the future value of the asset at the time of replacement, by inflating the current value of the asset at an assumed annual capital inflation rate. A calculation is then performed to determine annual contributions which, when invested in a reserve fund, will grow with interest to a balance equal to the future replacement cost. The contributions are calculated such that they also increase annually with inflation. Under this approach, an annual capital investment amount is calculated where funds are available for short-term needs while establishing a funding plan for long-term needs. Annual contributions in excess of capital costs in a given year would be transferred to a capital replacement reserve fund for future capital replacement needs. This approach provides for a stable funding base, eliminating variances in annual funding requirements, particularly in years when capital replacement needs exceed typical capital levy funding. Please refer to Figure 5-2 for an illustration of this method. Figure 5-2 Sinking Fund Method Road, Bridge and Major Culvert Assets From a road, bridge and major culvert perspective, the estimated annual sinking fund requirement, based on using the calculations discussed above, is approximately $37.0 million (in 2016 dollars). Based on the District s 2016 budget, current annual capital investment is approximately $15.4 million. This would provide a high level estimate of the annual infrastructure funding deficit at $21.6 million (in 2016 dollars).

55 5-16 Other Tax Supported Assets From a tax supported perspective for other assets, the estimated annual sinking fund requirement, based on using the calculations discussed above, is approximately $7.4 million (in 2016 dollars). Based on the District s 2016 budget, current annual capital investment is approximately $5.4 million. This would provide a high level estimate of the annual infrastructure funding deficit at $2.0 million (in 2016 dollars). Water From a water asset base perspective, the estimated annual sinking fund requirement, based on using the calculations discussed above, is approximately $12.8 million (in 2016 dollars). Based on the District s 2016 budget, current annual capital investment is approximately $3.4 million. This would provide a high level estimate of the District s annual water infrastructure funding deficit at $9.4 million (in 2016 dollars). Wastewater From a wastewater asset base perspective, the estimated annual sinking fund requirement, based on using the calculations discussed above, is approximately $12.8 million (in 2016 dollars). Based on the District s 2016 budget, current annual capital investment is approximately $3.5 million. This would provide a high level estimate of the District s annual wastewater infrastructure funding deficit at $9.3 million (in 2016 dollars). Waste Management From a waste management asset base perspective, the estimated annual sinking fund requirement, based on using the calculations discussed above, is approximately $2.5 million (in 2016 dollars). Based on the District s 2016 budget, current annual capital investment is approximately $2.5 million. Therefore, the District s annual investment for waste management infrastructure is sufficient. Please see Figures 5-3 to 5-7 below for a 20 year forecast of implementing this strategy for tax supported, water, wastewater and waste management assets respectively under the recommended scenario. The blue portion of the graph outlines the current capital investment amounts, increasing at inflation. The red portion indicates the result of implementing recommended increases in available funding sources (resulting in increases in capital investment annually). The green represents optimal annual capital investment amounts (calculated as described above). Please note optimal capital investment funding can come from a number of additional sources, such as grants, donations, debt and other contributions.

56 5-17 Figure 5-3 Scenario 2 Figure 5-4 Scenario 2

57 5-18 Figure 5-5 Scenario 2 Figure 5-6 Scenario 2

58 5-19 Figure 5-7 Scenario 2 To further mitigate the potential infrastructure funding deficit, the District could consider: Decreasing expected levels of service to make available capital funding; Issuing debt for significant and/or unforeseen capital projects, in addition to the debt recommended within this report, while staying within the District s debt capacity limits (this would have the impact of spreading out the capital repayment over a defined term); Actively seeking out and applying for grants; Consider approaching the development community for funding assistance with respect to growth/expansion related projects; Rate increases, where needed (i.e. taxation, user fees); or Implementing operating efficiencies (i.e. reduced operating costs to allow more capital investment).

59 6. FUTURE ENHANCEMENTS

60 FUTURE ENHANCEMENTS The following enhancements have been identified that will improve the quality and efficiency of future updates and ensure that future regulatory requirements are met: Develop an Asset Management Policy that includes a debt management policy and guidelines, a reserve management policy and guidelines, and a cash management policy; Establish a centralized asset inventory and procure software to enable improved lifecycle costing and multiple financing scenarios based on varying levels of service; Initiate a review of levels of service to align with District s Strategic Priorities and legislative requirements and evaluate whether a change to the current levels of service is desired by Council and provide options to finance any requested changes; Review performance measures as identified in chapter 3 and update these measures as required to meet future regulations; Complete an in-depth reserve fund analysis; and Update the plan in accordance with the future regulations and timelines to include a future demand analysis and risk management chapter. In addition, staff will review and assess the resources necessary to meet the future regulatory requirements and ensure compliance. Asset management will continue to provide a mechanism for reliable, repeatable, and transparent decision making. However, asset management Is more than just a project, and to realize the full benefits, the principles should be systematically developed, embedded and integrated across all asset-owning departments, and be continuously improved.

61 APPENDIX A DETAILED ASSET INVENTORY LINK TO APPENDIX A

62 APPENDIX B ASSET MANAGEMENT ASSUMPTIONS

63 APPENDIX B: ASSET MANAGEMENT PLAN ASSUMPTIONS B-1 The following assumptions were made during the creation of the District s asset management plan. 1. STATE OF LOCAL INFRASTRUCTURE a) When inflating an asset value to a 2016 replacement value, the Non-Residential Building Construction Price Index (NRBCPI) was used for construction related assets (i.e. roads related, storm, water, wastewater and facilities) and the Consumer Price Index (CPI) was used for all other assets (i.e. machinery & equipment, vehicles and land improvements). b) In order to establish an initial condition assessment for some assets, calculations were performed to link condition to asset age. This was done in order to establish condition ratings for this report and it is recommended that the District follow the Condition Assessment Policy shown in Appendix C in the future. 2. ASSET MANAGEMENT STRATEGY a) Capital inflation rate will be assumed to be 3% annually. b) Operating budget inflation rate will be assumed to be 1.5% annually. c) Regarding operating expenses included in the District s current budget, it is assumed that they will increase at an operating inflation rate annually, unless staff have provided alternative impacts. d) When any existing debenture payments are complete (if applicable), annual budget savings created through removing these payments have been dedicated to capital. e) Ranges of Remaining Service Life (RSL) for the assets contained in this report can be seen in Table B-1 below. Table B-1 RSL Range Road Base and Surface

64 B-2 Table B-1 (cont.) Water and Wastewater Assets All Other Assets 3. FINANCING STRATEGY a) Taxation assessment growth is assumed to be 0.96% annually. b) Development charges rates are assumed to increase at 1.2% annually. c) Gas tax revenue has been identified as a funding source for the purposes of this analysis (i.e. for asset replacement purposes), and has been assumed to continue throughout the forecast period. d) Ontario Community Infrastructure Fund (OCIF) has been identified as a funding source for the first five (5) years of the forecast, as funding amounts are known. e) Interest rate earned on a Capital Replacement Reserve Fund will be 1.5% annually. f) In the case where debt financing is needed, the model assumed debt terms of 20 years at 5% annual interest. For internal financing from the Debt Reduction Reserve, the model assumed debt terms of 10 years at 4% annual interest. For growth related debt, debt payments are shown as funded directly from the development charge reserve funds.

65 APPENDIX C DATA VERIFICATION AND CONDITION ASSESSMENT POLICY

66 C-1 APPENDIX C: DATA VERIFICATION AND CONDITION ASSESSMENT POLICY District of Muskoka Data Verification and Condition Assessment Policy Data Verification 1. Asset data updating and editing will be through the District s PSAB 3150 compliance procedures as well as the individual departments responsible for the assets. 2. Asset additions, disposals, betterments, and write-offs will be recorded based on the District s PSAB 3150 Compliance Policies. 3. Verification of the correct treatment of asset revisions will be completed through annual reviews by the District s Treasurer and external auditor as part of the year end process. 4. During years in which condition assessments are not being performed, asset replacement cost will be determined based on a combination of inflating previous current values or through the use of the current year s historical invoice data. Where indices are being used, the Non-Residential Building Construction Price Index (NRBCPI) shall be used for construction related assets (i.e. roads related, storm, water, and facilities) and the Consumer Price Index (CPI) shall be used for all other assets (i.e. machinery & equipment, vehicles and land improvements). Condition Assessment 1. Condition assessments shall be performed as outlined in Tables C-1 to C-3 below. Condition assessments shall be performed by qualified individuals (or companies) and shall include a review of the following: Current asset condition (consistent with the rating format used within this report, unless District staff stipulate a new format); i. Identify any unusual wear from asset use that may hinder asset performance and eventually reduce useful life. ii. Assess asset performance and identify (if any) capital improvements that can be applied to extend the asset s useful life and/or bring the asset back to proper service levels. Current asset replacement cost. This is to be based on replacing the asset under current legislation/requirements using the District s specifications; and Remaining service life, assuming current maintenance and usage levels.

67 C-2 Table C-1 Condition Assessment Time Table Roads Asset Type Bridges and Culverts (greater than 3m) Water, Wastewater, Storm Related All Other Tax and Rate Supported Assets Frequency of Condition Assessment Every 5 years, based on Minimum Maintenance Standards Every 2 years, based on applicable legislation Every 5 years, based on applicable legislation Every 2 years, or based on applicable legislation Table C-2 Asset Condition Analysis Asset Type Road Base, Road Surface Bridges and Culverts (greater than 3m) Water, Wastewater, Storm Related All Other Tax and Rate Supported Assets Condition Source Roads Needs Study OSIM Reports BCI/MCR/PCR provided Age/Remaining Service Life Age/Remaining Service Life

68 C-3 Table C-3 Asset Condition Analysis Asset Type Condition Rating Road Base and Surface Bridges and Culverts (BCI provided) Bridges and Culverts (no BCI weighted MCR/PCR) Water, Wastewater, Storm Related All Other Tax and Rate Supported Assets Age Based

69 APPENDIX D SCENARIO ANALYSIS CAPITAL FORECASTS

70 D-1 District of Muskoka 2016 Asset Management Plan Capital Replacement - Scenario 1 - Calculated Risk Road, Bridge and Major Culvert Assets Table D-1 Asset Type Immediate Needs TOTAL Total Scheduled Capital - Inflated 40,779,602 3,064, , , ,793 54,910, , , , , ,758,078 17,509,026 18,034,297 21,451,086 19,132,586 35,525,325 38,936,999 43,902,302 35,517,370 52,391,056 34,579, ,554,588 Road Base 15,820,201 1,225,893 19,463,494 30,952,291 67,461,879 Road Surface 23,730,301 1,838,840 29,195,241 46,428,436 2,023,655 11,963,818 14,330,103 8,460,233 10,839,934 6,005, ,815,734 Bridge Structure 676, ,830 Bridge Deck 290,070 8,434,410 8,724,480 Culverts 1,229, ,400 2,017,000 6,229, ,700 10,701,300 - Expansion Projects - 121, , , , , , , ,600 2,141,200 13,028,360 13,028,360 13,028,360 13,028,360 13,028,360 13,028,360 13,028,360 13,028,360 13,028,360 13,028, ,488,

71 D-2 District of Muskoka 2016 Asset Management Plan Capital Replacement - Scenario 2 - Phased In Approach Road, Bridge and Major Culvert Assets Table D-2 Asset Type Immediate Needs TOTAL Total Scheduled Capital - AMP inflated - 18,053,000 17,150,401 17,667,353 17,554,812 18,084,157 18,629,580 19,191,453 19,770,271 20,398,342 22,050,106 24,649,272 26,205,911 28,675,441 30,402,631 32,207,644 34,093,596 36,063,718 37,145,630 38,259,998 39,407, ,661,114 Roads 18,053,000 17,025,256 17,536,013 17,417,019 17,939,529 18,477,715 19,032,047 19,603,008 20,191,098 19,256,325 7,140,245 8,171,614 10,100,115 11,270,045 12,501,081 13,795,836 15,157,025 15,611,736 16,080,088 16,562, ,921,286 Expansion Projects - 125, , , , , , , ,244 2,793,780 17,509,026 18,034,297 18,575,326 19,132,586 19,706,563 20,297,760 20,906,693 21,533,894 22,179,911 22,845, ,739,

72 D-3 Road, Bridge and Major Culvert Assets Scenario 1 Based on Calculated Risk Road, Bridge and Major Culvert Assets Scenario 2 Based on Phased-In Approach

73 D-4 District of Muskoka 2016 Asset Management Plan Capital Replacement - Scenario 1 - Calculated Risk Other Tax Supported Capital Table D-3 Description Immediate Needs TOTAL Capital Replacement Hauled Sewage 1,559, ,383, ,729, , ,154,733 13,437,228 Port Carling Locks 600, ,059, ,870-1,591, , , ,012 2,893,702 8,518,167 Airport ,457, ,239, ,678,494-8,912, ,452 5,408,228 22,879,990 Administration Facilities , , , , , ,122 2,282,270 Long Term Care Home 130, ,941 64, , ,011-39, , ,561 1,564,268 Muskoka Paramedic Services 272, ,419 2,093,597 86, , ,061 2,054, , ,136 1,963, , , ,091 2,319, ,892 1,684, ,565 2,476, ,521,963 Community Housing 857, ,791 95, , , , , , , ,262 4,255,871 Fleet Services 835, , , ,584 1,848,077 1,498,075 92,015 83, , , ,296 1,546,705 1,267, , ,672 3,435,633 98, ,814 1,464,841 3,322, ,560 18,560,290 Information Technology Services 280,000 59,950 28,119 13, ,351 67,474 31,648 15, ,177 75,943 35,620 17, ,877 85,474 40,091 19, ,061 96,202 45,123 22, ,418 2,921,449 General Administration - 60, , ,387 13,535 13,683 13,834 13,986 14,140 14,296 14,453 14,612 14, ,428 Community Services Planning 110, , ,340 75,539 22,671 49, ,484 24,615 86, , , , , , , , , , , ,831 2,238,884 Capital - AMP 4,535, ,470 2,521, ,245 3,047,479 8,305,576 2,604,999 1,408,143 1,569,981 1,748,832 13,036,901 4,053,872 2,167,303 4,005,709 3,425,886 14,158,721 2,607, ,581 4,125,596 5,502,732 12,822,190 93,445,809 Capital Expansion - Hauled Sewage 452, ,899 1,614,902 1,231,940 1,040, , , , ,373,160 1,414,355 1,456,785 1,500,489 1,545,504 1,591,869 1,639,625 1,688,814 1,739,478 1,791,662 23,086,159 Port Carling Locks , , , , , , , , , , , , , , , , ,959 7,599,853 Airport ,400, , , , , , , , , , ,446 4,039,752 Administration Facilities 255, , , , , , , , , ,166 2,927,234 Community Housing 1,889,900 1,889,900 Information Technology Services - 230, , ,173 42, , , , , , , , , , , , , , , ,288 4,835,036 General Administration - Community Services 1,565,728 1,565,728 Planning - Expansion Projects 2,342,400 1,109,104 1,961,604 3,211,525 1,468,451 1,534, ,078 1,437, ,341 1,877,308 2,552,568 2,629,145 2,708,019 2,789,260 2,872,937 2,959,125 3,047,899 3,139,336 3,233,516 3,330,522 45,943,661 Total Expenditures 4,535,242 3,078,870 3,630,510 2,327,850 6,259,003 9,774,027 4,139,414 2,404,222 3,007,088 2,492,172 14,914,208 6,606,440 4,796,448 6,713,728 6,215,146 17,031,658 5,567,072 3,742,479 7,264,932 8,736,249 16,152, ,389,471

74 D-5 District of Muskoka 2016 Asset Management Plan Capital Replacement - Scenario 2 - Phased In Approach Other Tax Supported Capital Table D-4 Description TOTAL Capital Replacement Hauled Sewage 529, , , , , , , , , , , , , , , , , , , ,404 14,226,670 Port Carling Locks 299, , , , , , , , , , , , , , , , , , , ,523 8,141,121 Airport - 484, , , , ,995 1,061,615 1,192,869 1,331,043 1,476,434 1,629,351 1,566,349 1,498,101 1,424,348 1,344,822 1,385,167 1,426,722 1,469,524 1,513,609 21,938,282 Administration Facilities , , , , , ,122 2,282,270 Long Term Care Home 130, ,941 64, , ,011-39, , ,561 1,564,268 Muskoka Paramedic Services 634, , , , , , , , , , , , , , , ,077 1,017,719 1,048,251 1,079,698 1,112,089 17,041,429 Community Housing 857, ,791 95, , , , , , , ,262 4,255,871 Fleet Services 680, , , , , , , , , , , , , ,724 1,028,686 1,059,546 1,091,333 1,124,073 1,157,795 1,192,529 18,274,073 Information Technology Services 339,950 28,119 13, ,351 67,474 31,648 15, ,177 75,943 35,620 17, ,877 85,474 40,091 19, ,061 96,202 45,123 22, ,418 2,921,449 General Administration - 60, , ,387 13,535 13,683 13,834 13,986 14,140 14,296 14,453 14,612 14, ,428 Planning 110, , ,340 75,539 22,671 49, ,484 24,615 86, , , , , , , , , , , ,831 2,238,884 - Capital Expansion - Hauled Sewage 452, ,899 1,614,902 1,231,940 1,040, , , , ,373,160 1,414,355 1,456,785 1,500,489 1,545,504 1,591,869 1,639,625 1,688,814 1,739,478 1,791,662 23,086,159 Port Carling Locks , , , , , , , , , , , , , , , , ,959 7,599,853 Airport 1,400, , , , , , , , , , ,446 4,039,751 Administration Facilities 255, , , , , , , , , ,166 2,927,234 Community Housing 1,889,900 1,889,900 Information Technology Services - 230, , ,173 42, , , , , , , , , , , , , , , ,288 4,835,036 Community Services 1,565,728 1,565,728 Expansion Projects 2,342,400 1,109,104 1,961,604 3,211,525 1,468,451 1,534, ,078 1,437, ,341 1,877,308 2,552,568 2,629,145 2,708,019 2,789,260 2,872,937 2,959,125 3,047,899 3,139,336 3,233,516 3,330,522 45,943,660 Total Expenditures 5,923,225 4,082,293 4,985,921 6,257,724 5,506,456 5,122,103 4,649,763 5,323,036 4,623,773 6,871,187 7,576,705 7,871,485 9,225,764 7,739,664 8,602,454 8,220,036 8,105,954 8,292,545 9,399,676 10,713, ,093,407

75 D-6 Other Tax Supported Assets Scenario 1 Based on Calculated Risk Other Tax Supported Assets Scenario 2 Based on Phased-In Approach

76 D-7 Municipality Asset Management Plan Expansion Projects - Uninflated Table D-5 Tax Supported Assets Description Total Growth Projects Administration Facilities POA Court Reconfiguration/Expansion Future 1,000,000 1,000, Parking/Landscaping Future 900, ,000 1,900, ,900,000 Computer Services Phone System Future 294, , Data Centre Infrastructure Management Future 1,753, ,000 84,000 85,400 38, ,400 89,700 91,200 40, , , Electronic Document Management Solution Future 164, , Network Infrastructure Future 991,700 99, ,000 20, ,700 99, , Website Redesign Future 181,000 37,800 46,000 97, Council Chamber Digital Upgrade Future 90,000 30,000 60,000 3,475, , , ,400 38, , ,700 91, , ,800 2,106,000 Roads, Bridges and Culverts Roadway Construction Future 117,615, ,615, Miscellaneous Land Future 2,748, , , , , , , , , ,200 1,567, BB S Trans Corridor Phase 1 2,025,000 25,000 2,000, BB S Trans Corridor Phase 2 4,800,000 4,800, BB S Trans Corridor Phase 3 2,400,000 2,400, BB S Trans Corridor Phase 4 3,900,000 3,900, ,488, , , , , , , , ,600 2,141, ,283,600 Airport Future Development 2,694,600 1,281,200 1,413, Building Upgrades 300, ,000 2,994, ,281, ,713,400 Port Carling Locks Small Lock Structural/Mechanical/Electrical 1,205,800 84, , , , New Lockmaster Building & Washrooms 759,500 25, , , Large Lock Structural/Mechanical/Electrical 1,358, , ,800 1,042, Future Dock Redecking & Repair 1,604, , , , , , New Pedestrian/Maintenance Vehicle Ramp 588, ,900 5,517, , , , , , , ,500-3,056,500 Hauled Sewage McLean Upgrade/Expansion 836,000 82, , , , Baxter Upgrade/Expansion Future 1,240, , , , , Medora Spray Irrigation Expansion 340,500 76, , , Receiving Facilities HV Sewage Plant 2,070, ,000 1,320, Receiving Facilities GH Sewage Plant 2,355,600 2,355, Franklin Exfiltration Pond Expansion Future 1,124,600 81, , , , Mobile Dewatering Equipment 533, , Watt Rehabilitation Future 1,030,600 1,030, Freeman Spray Irrigation Expansion Future 1,376, , , , , Ryde Upgrade/Expansion & Property Future 1,118,800 80, , , , Bracebridge Lagoon Upgrade/Expansion Future 696,800 84, , , Medora Spray Irrigation Expansion Future 1,030,600 1,030, Receiving Facilities MT Sewage Plant 471, , Receiving Facilities BAYS Sewage Plant 471, , Baxter Upgrade/Expansion 121, , Bracebridge Lagoon Upgrade/Expansion 255, , , Stephenson Upgrade Future 1,207,300 1,207, Inlet Works/Flow Measuring 300, , Inlet Works/Flow Measuring Future 300, ,000 16,880, , ,300 1,522,200 1,127, , , , , ,217,600 Community Services Community Offices - Bracebridge 1,200,000 1,200,000 1,200, ,200,000 - Community Housing - Capital Incentive Program SIF Capital Incentive Program 1,389,300 1,389, SHIP Capital Incentive Program 500, ,600 1,889,900 1,889, Projects - (134,349,390) 14,927,710 14,927,710 14,927,710 14,927,710 14,927,710 14,927,710 14,927,710 14,927,710 14,927,710 - Total Capital Expenditures 167,346,100 2,342,400 1,198,300 1,972,800 3,065,100 1,433,200 1,454, ,700 1,304, ,400 3,580,000 14,927,710 14,927,710 14,927,710 14,927,710 14,927,710 14,927,710 14,927,710 14,927,710 14,927,710 14,927,710

77 D-8 District of Muskoka 2016 Asset Management Plan Capital Replacement - Scenario 1 - Calculated Risk Water Assets Table D-6 Asset Type Immediate Needs TOTAL Total Scheduled Capital - Inflated AMP 11,941,694 5,156,600 4,008,817 2,982,108 1,417,038 1,822,258 6,271,053 1,532,267 4,207, ,568 2,213,390 9,420,495 9,260,804 17,775,917 9,465,663 29,757,589 9,675,053 9,781,478 9,889,074 21,193,955 11,586, ,617,498 New Capital - Growth ,930 2,610,863 2,639,582 2,668,617 2,697,972 2,727,650 2,757,654 2,787,988 2,818,656 2,849,661 2,881,008 27,507,582 New Capital - Non-Growth 2,365,200 3,600,575 1,057, ,930,012 4,016,807 4,060,992 4,105,663 4,150,825 4,196,485 4,242,646 4,289,315 4,336,497 4,384,199 4,432,425 51,169,436 Replace/Upgrade/Decommission - AMP 11,941, , , ,765 5,319, , ,229-78, ,451-8,413,244-20,187, ,196,100 1,478,837 61,504,082 Rehabilitation and Renewal 2,565, ,300 1,535, , , ,298 1,425,355 3,263,055-70,622 2,404,447 2,430,896 2,457,636 2,484,670 2,512,001 2,539,633 2,567,569 2,595,813 2,624,367 2,653,235 37,200,938 R&M/Studies 226, ,942-55,698 57,356 59,149-62, ,568 66, , , , , , , , , , ,163 2,235,460 - District of Muskoka 2016 Asset Management Plan Capital Replacement - Scenario 2 - Phased In Approach Water Assets Table D-7 Asset Type Immediate Needs TOTAL Total Scheduled Capital - Inflated AMP - 8,267,700 6,320,197 5,925,927 4,870,507 4,577,483 4,593,516 5,176,687 7,189,651 5,375,438 7,405,480 10,667,957 10,813,955 11,282,368 11,442,948 11,606,389 11,772,754 11,942,111 12,114,526 12,290,070 12,468, ,104,478 Water - Growth ,930 2,610,863 2,639,582 2,668,617 2,697,972 2,727,650 2,757,654 2,787,988 2,818,656 2,849,661 2,881,008 27,507,582 Water - New Capital 2,365,200 3,600,575 1,057, ,930,012 4,016,807 4,060,992 4,105,663 4,150,825 4,196,485 4,242,646 4,289,315 4,336,497 4,384,199 4,432,425 51,169,436 Water - Upgrade/Replacement - 3,111,100 2,311,380 3,333,010 3,923,429 3,535,990 3,642,070 3,751,332 3,863,872 5,116,871 5,270,377 1,507,913 1,553,151 1,919,694 1,977,285 2,036,604 2,097,702 2,160,633 2,225,452 2,292,215 2,360,982 57,991,061 Water - Rehabilitation/Renewal 2,565, ,300 1,535, , , ,298 1,425,355 3,263,055-70,622 2,404,447 2,430,896 2,457,636 2,484,670 2,512,001 2,539,633 2,567,569 2,595,813 2,624,367 2,653,235 37,200,938 Water - Non-capital R&M, Studies 226, ,942-55,698 57,356 59,149-62, ,568 66, , , , , , , , , , ,163 2,235,460 -

78 D-9 Municipality Asset Management Plan Expansion Projects - Water Assets Table D-8 Description Total Water Projects WTP BB WTP Expansion 24,141,900 24,141, GH Beach Road WTP 10,000,000 10,000, HV Fairyview WTP 21,041,900 21,041, GH WTP Filter Underdrains & Sedimentation Tank 3,850,000 1,550,000 1,900, , HV WTP Phase III 3,111, ,200 1,661, ,900 62,145,300 2,365,200 3,561,400 1,034, ,183,800 BPS/Reservoirs HV Highland Drive Booster/Reservoir 2,414,200 2,414,200 Towers/Tanks PS Water Tower 1,810,600 1,810, BAYS Water Tower 1,810,600 1,810,600 3,621, ,810,600 1,810,600 Total Capital Expenditures 68,180,700 2,365,200 3,561,400 1,034, ,810,600 59,408,600

79 D-10 Water Assets Scenario 1 Based on Calculated Risk Water Assets Scenario 2 Based on Phased-In Approach

80 D-11 District of Muskoka 2016 Asset Management Plan Capital Replacement - Scenario 1 - Calculated Risk Wastewater Assets Table D-9 Asset Type Immediate Needs TOTAL Total Scheduled Capital - Inflated AMP 20,242,034 17,163,700 7,693,710 21,056,708 15,536,217 18,136,224 12,501, ,115 1,601, ,347 1,108,385 6,615,146 6,321,053 12,857,207 6,409,383 22,969,801 6,499,668 6,545,556 6,591,949 36,331,319 8,180, ,633,645 New Capital - Growth 760, , ,117,429 2,140,721 2,164,269 2,188,076 2,212,145 2,236,478 2,261,080 2,285,951 2,311,097 2,336,519 23,200,304 New Capital - Non-Growth 14,212,790 6,637,721 20,220,000 13,901,250 15,165, ,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 93,416,805 Replace/Upgrade/Decommission - AMP 20,242,034 90, , ,787 11,475, , , ,538-6,492,231-16,515, ,692,467 1,493,987 88,496,362 Rehabilitation and Renewal 1,000, , , ,209 1,900, , , , ,102 66,539 1,261,596 1,275,474 1,289,504 1,303,689 1,318,029 1,332,527 1,347,185 1,362,004 1,376,986 1,392,133 18,300,284 R&M/Studies 1,100, , , , , , , , , , , , , , , , , , , ,615 12,219, District of Muskoka 2016 Asset Management Plan Capital Replacement - Scenario 2 - Phased In Wastewater Assets Table D-10 - Asset Type Immediate Needs TOTAL Total Scheduled Capital - Inflated AMP - 20,376,884 11,095,989 24,561,056 18,710,877 21,219,200 4,854,783 4,569,289 5,218,846 4,831,721 4,776,342 10,716,810 10,893,432 11,074,527 11,260,220 11,450,640 11,645,920 11,846,196 12,051,608 12,262,302 12,478, ,895,068 Wastewater - Growth 760, , ,117,429 2,140,721 2,164,269 2,188,076 2,212,145 2,236,478 2,261,080 2,285,951 2,311,097 2,336,519 23,200,304 Wastewater - New Capital 14,212,790 6,637,721 20,220,000 13,901,250 15,165, ,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 93,416,805 Wastewater - Upgrade/Replacement/Decommission 3,303,184 3,402,279 3,504,348 3,609,478 3,717,762 3,829,295 3,944,174 4,062,499 4,184,374 4,309,906 4,439,203 4,572,379 4,709,550 4,850,837 4,996,362 5,146,253 5,300,640 5,459,659 5,623,449 5,792,153 88,757,784 Wastewater - Rehabilitation/Renewal 1,000, , , ,209 1,900, , , , ,102 66,539 1,261,596 1,275,474 1,289,504 1,303,689 1,318,029 1,332,527 1,347,185 1,362,004 1,376,986 1,392,133 18,300,284 Wastewater - Non-capital R&M, Studies 1,100, , , , , , , , , , , , , , , , , , , ,615 12,219,

81 D-12 Municipality Asset Management Plan Expansion Projects - Wastewater Assets Table D-11 Description Total Wastewater Projects WWTP HV GP Upgrade to Receive MV Phase I 6,500,000 6,500, HV GP Upgrade to Receive MV Phase II 18,250,000 4,500,000 7,000,000 6,750, HV Forcemain from MV to GP Phase I 2,750,000 2,750, HV MV STP Convert to SPS & Decomm 20,000,000 13,000,000 7,000, HV GP Upgrade Future 15,000,000 15,000, HV Forcemain from MV to GP Phase II 2,250,000 2,250, BB Lagoon Lane STP Headworks 4,022,800 4,022, BB Lagoon Lane STP Control Building 1,700,000 1,700, GH STP Expansion ,141,900 24,141,900 94,614,700 14,972,800 6,750,000 20,000,000 13,750,000 15,000, ,141,900 Capital Financing CWWF 4,657,239 4,657,239 OCIF 2,851,330 1,697,587 1,153,743 Net Amount to be funded in Asset Management Plan 87,106,131 8,617,974 5,596,257 20,000,000 13,750,000 15,000, ,141,900 Collection BB Trunk Main from Inveraray Crt to MR ,569,200 1,569, BB Trunk Main Sellens N ,810,600 1,810, BB Trunk Main MR 4 from Meadow to Sellens , , HV North End Servicing ,810,600 1,810,600 6,035, ,035,400 SPS HV Ferguson Rd SPS Expansion 603, , HV Hodges Lane SPS Expansion 3,379,900 3,379, HV Coveside Dr SPS Expansion 4,224,800 4,224, GH Taboo SPS Expansion 3,621,300 3,621,300 11,829, ,829,500 Total Capital Expenditures 112,479,600 14,972,800 6,750,000 20,000,000 13,750,000 15,000, ,006,800

82 D-13 Wastewater Assets Scenario 1 Based on Calculated Risk Wastewater Assets Scenario 2 Based on Phased-In Approach

83 D-14 District of Muskoka 2016 Asset Management Plan Capital Replacement - Scenario 1 - Calculated Risk Waste Management Assets Table D-12 Asset Type Immediate Needs TOTAL Total Scheduled Capital - Inflated AMP - 2,119,900 2,200,340 7,025,503 1,198,592 6,351, ,297 2,596,671 2,702,674 2,197,989 2,902,964 1,970,230 1,361,452 1,376,428 1,391,569 1,843,591 1,422,352 1,437,998 1,453,816 1,469,807 2,142,306 45,283,947 New Capital 1,301, ,560 1,979, ,673 2,764, ,297 1,975,935-2,197,989-1,009,982 1,021,092 1,032,324 1,043,679 1,055,160 1,066,767 1,078,501 1,090,365 1,102,359 1,114,485 21,937,690 Replace/Upgrade - AMP - - 4,072, ,237 2,939, ,295,971-2,902, , , ,330 13,402,475 Rehabilitation and Renewal 400,000 1,346, , , , ,736 1,406, , , , , , , , , , ,491 9,449,957 R&M/Studies 418,000 75, ,825 District of Muskoka 2016 Asset Management Plan Capital Replacement - Scenario 2 - Phased In Approach Waste Management Assets Table D-13 Asset Type Immediate Needs TOTAL Total Scheduled Capital - Inflated AMP Phased In - 2,684,434 2,781,810 3,552,230 1,340,236 4,047, ,746 3,270,754 2,101,009 2,913, ,588 2,105,325 2,142,899 2,181,318 2,220,606 2,260,784 2,301,877 2,343,908 2,386,904 2,430,888 2,475,889 47,050,705 New Capital 1,301, ,560 1,979, ,673 2,764, ,297 1,975,935-2,197,989-1,009,982 1,021,092 1,032,324 1,043,679 1,055,160 1,066,767 1,078,501 1,090,365 1,102,359 1,114,485 21,937,690 Replace/Upgrade - AMP 564, , , , , , , , , , , , , , , , , , , ,913 15,169,233 Rehabilitation and Renewal 400,000 1,346, , , , ,736 1,406, , , , , , , , , , ,491 9,449,957 R&M/Studies 418,000 75, ,825

84 D-15 Municipality Asset Management Plan Expansion Projects - Uninflated Table D-14 Waste Management Assets Description Total Solid Waste Land Purchase 938, , , , GB Transfer Station Global Tower Road 112, , New Disposal Facility - RW Landfill 1,100,000 1,100, Garbage/Recycling Compactors at Tower Rd 200, , Garbage/Recycling Compactors at Eveleigh Road 300, , Garbage/Recycling Compactors at HV TS 200, , Recycling Compactors at Rosewarne 200, , RW Compost Pad (RAP, SWM & Bear Fence) 207, , New Huntsville TS Upon Stisted Closure 407, , Rosewarne Cell Development 1,587, ,000 50,000 1,437, Rosewarne Cell Development Future 14,631, ,713,900-1,850,400-2,013,800 9,053,200 Total Capital Expenditures 19,883,800 1,301, ,100 1,937, ,000 2,646, ,000 1,850,400-2,013,800-9,053,200

85 D-16 Waste Management Assets Scenario 1 Based on Calculated Risk Waste Management Assets Scenario 2 Based on Phased-In Approach

86 APPENDIX E TAX SUPPORTED ASSET MANAGEMENT STRATEGY & FINANCING STRATEGY

87 Actual Actual Budget Description Prior Capital Expenses Roads 15,261,507 13,163,421 24,621,400 District of Muskoka 2016 Asset Management Plan Financing Strategy Table E-1A Road, Bridge and Major Culvert Capital E-1 Capital - Staff Roads - AMP 43,844, ,765, , , ,964, ,875,760-15,818,762 18,639,239 22,995,609 13,983,476 30,211,146 11,734,240 Roads - Growth - 12,515 13,134 13,779 14,463 15,186 15,941 16,726 20, ,378 1,750,903 1,803,430 1,857,533 1,913,259 1,970,656 2,029,776 2,090,669 2,153,389 2,217,991 2,284,531 Subtotal Capital - Staff 43,844,335 12,515 13,134 13,779 54,780, ,499 15, ,476 20, ,243,676 1,750,903 1,803,430 4,733,292 1,913,259 17,789,418 20,669,015 25,086,278 16,136,865 32,429,137 14,018,771 Expansion Projects - 112, , , , , , , ,519 2,514,402 15,758,124 16,230,867 16,717,793 17,219,327 17,735,907 18,267,984 18,816,024 19,380,505 19,961,920 20,560,777 Level of Service Adjustments Total Expenditures 15,261,507 13,163,421 24,621,400 43,844, , , ,793 54,910, , , , , ,758,078 17,509,026 18,034,297 21,451,086 19,132,586 35,525,325 38,936,999 43,902,302 35,517,370 52,391,056 34,579,548 Capital Financing Provincial/Federal Grants Internal Debt ,500, Growth Related Debentures Reserve Fund: Development Charges 672, ,835 1,515,654-12,515 13,134 13,779 14,463 15,186 15,941 16,726 20, ,378 1,750,903 1,803,430 1,857,533 1,913,259 1,970,656 2,029,776 2,090,669 2,153,389 2,217,991 2,284,531 Reserve Fund: Gas Tax Reserve/Reserve Fund: Other 13,926,661 12,523,726 23,004, Reserve Fund: DC Shortfall drawn from Roads Reserve 492,312 Other (Developer Contribution) 22,402 Other (Area Municipal Contribution) 38, , , Gain/(Loss) on Sale Transfer from Operating Tax Supported Capital Reserve Fund(s) ,344, , , ,014 54,896, , , , , ,478,700 15,758,124 16,230,867 19,593,553 17,219,327 33,554,669 36,907,223 41,811,632 33,363,981 50,173,065 32,295,017 Total Capital Financing 15,152,882 13,271,091 24,621,400 43,844, , , ,793 54,910, , , , , ,758,078 17,509,026 18,034,297 21,451,086 19,132,586 35,525,325 38,936,999 43,902,302 35,517,370 52,391,056 34,579,548 Total Capital Expenses less Capital Financing 108,625 (107,671) Table E-2A Debt Requirements Non Growth Related Debt Principal Year (Inflated) Budget Budget ,500,000 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083, Total Annual Non-Growth Related Debt Charges 13,500, ,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 Growth Related Debt Principal Year (Inflated) Budget Budget Budget Total Annual Growth Related Debt Charges Table E-3A Reserve and Reserve Fund Continuity Schedules Development Charges Reserve Fund Actual 2016 Roads ,953,400 2,939,944 4,197,431 5,487,845 6,811,820 8,169,995 9,563,035 10,991,613 12,453,187 13,689,963 13,467,697 13,204,976 12,808,685 12,365,381 11,872,847 11,328,784 10,730,811 10,076,456 9,363,161 Opening Balance 270, ,252 Development Charge Proceeds 1,154, , ,611 1,208,590 1,223,093 1,237,770 1,252,623 1,267,655 1,282,866 1,298,261 1,313,840 1,329,606 1,345,561 1,271,951 1,287,215 1,302,661 1,318,293 1,334,113 1,350,122 1,366,323 1,382,719 Transfer to Capital 451,774-12,515 13,134 13,779 14,463 15,186 15,941 16,726 20, ,378 1,750,903 1,803,430 1,857,533 1,913,259 1,970,656 2,029,776 2,090,669 2,153,389 2,217,991 2,284,531 Transfer to Other Transfer to Operating (Debenture Payments) Interest Earned 7,148 28,868 43,447 62,031 81, , , , , , , , , , , , , , , , ,920 Closing Balance 980,252 1,953,400 2,939,944 4,197,431 5,487,845 6,811,820 8,169,995 9,563,035 10,991,613 12,453,187 13,689,963 13,467,697 13,204,976 12,808,685 12,365,381 11,872,847 11,328,784 10,730,811 10,076,456 9,363,161 8,588,269 Required from Development Charges - 12,515 13,134 13,779 14,463 15,186 15,941 16,726 20, ,378 1,750,903 1,803,430 1,857,533 1,913,259 1,970,656 2,029,776 2,090,669 2,153,389 2,217,991 2,284,531 DC Shortfall Capital Reserve/Reserve Funds (Roads) Actual ,794,313 17,488,975 36,588,695 57,640,822 25,195,481 49,105,046 76,019, ,115, ,259,974 67,477,217 88,271, ,651, ,895, ,013, ,297, ,944, ,606, ,056, ,101,256 Opening Balance 12,896, ,396 Transfers From Operating/Capital 15,400,000 16,762,418 17,130,752 18,677,206 20,324,306 22,078,312 23,945,865 25,934,110 28,050,321 30,302,428 32,698,742 35,248,187 37,960,229 40,844,812 43,912,590 47,174,866 50,643,430 54,331,204 58,251,582 62,418,781 66,847,889 Transfer to Capital 14,757,301 30,344, , , ,014 54,896, , , , , ,478,700 15,758,124 16,230,867 19,593,553 17,219,327 33,554,669 36,907,223 41,811,632 33,363,981 50,173,065 32,295,017 Transfer to Operating Interest Earned 254, , , , , ,690 1,123,435 1,553,432 2,028, ,200 1,304,509 1,650,017 1,993,536 2,423,838 2,664,499 2,910,510 3,141,961 3,562,404 3,799,526 4,374,812 Closing Balance 13,794, ,396 17,488,975 36,588,695 57,640,822 25,195,481 49,105,046 76,019, ,115, ,259,974 67,477,217 88,271, ,651, ,895, ,013, ,297, ,944, ,606, ,056, ,101, ,028,940 Note: Closing reserve fund balance as a percentage of capital asset balance (inflated) 1.08% 0.02% 1.29% 2.63% 4.02% 1.70% 3.23% 4.85% 6.51% 8.25% 3.94% 5.00% 6.14% 7.20% 8.50% 9.08% 9.63% 10.09% 11.10% 11.50% 12.85% Net Expenditures Description Actual 2014 Actual 2015 Budget 2016 Table E-4A Tax Supported Operating Budget Summary Transportation - Roads 10,291,511 8,814,168 9,265,291 9,404,200 9,545,300 9,688,500 9,833,900 9,981,500 10,131,300 10,283,200 10,437,400 10,593,900 10,752,800 10,914,100 11,077,800 11,244,000 11,412,700 11,583,900 11,757,800 11,934,200 12,113,200 12,294,900 12,479,400 Transfers to Current Roads Reserve Funds (Capital Related) 14,750,000 15,400,000 15,400,000 Sub-total Transportation - Roads 25,041,511 24,214,168 24,665,291 9,404,200 9,545,300 9,688,500 9,833,900 9,981,500 10,131,300 10,283,200 10,437,400 10,593,900 10,752,800 10,914,100 11,077,800 11,244,000 11,412,700 11,583,900 11,757,800 11,934,200 12,113,200 12,294,900 12,479,400 Net Expenditures due to Level of Service Adjustments Transfer to Roads Tax Supported Capital Reserve Fund(s) ,762,418 17,130,752 18,677,206 20,324,306 22,078,312 23,945,865 25,934,110 28,050,321 30,302,428 32,698,742 35,248,187 37,960,229 40,844,812 43,912,590 47,174,866 50,643,430 54,331,204 58,251,582 62,418,781 66,847,889 New Debentures Payments New Debt - Growth Related New Debt - Non Growth Related Debt ,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 1,083,275 Transfer from Reserve Fund: Development Charges (Debt) Surplus/(Deficit) Adjustment Total Taxation Levy 25,041,511 24,214,168 24,665,291 26,166,618 27,759,327 29,448,981 31,241,481 33,143,087 35,160,440 37,300,585 39,570,996 41,979,603 44,534,817 47,245,562 50,121,304 53,172,087 56,408,565 59,842,041 63,484,505 67,348,679 71,448,057 75,796,956 80,410,564 Taxation Levy Analysis Prior Year Taxation Levy 23,101,490 25,041,511 24,214,168 24,665,291 26,166,618 27,759,327 29,448,981 31,241,481 33,143,087 35,160,440 37,300,585 39,570,996 41,979,603 44,534,817 47,245,562 50,121,304 53,172,087 56,408,565 59,842,041 63,484,505 67,348,679 71,448,057 75,796,956 Add: Provision for Assessment Growth (see below) , , , , , , , , , , , , , , , , , , , ,651 Current Year Taxation Levy at 0.0% Increase 23,101,490 25,041,511 24,214,168 24,902,078 26,417,818 28,025,816 29,731,691 31,541,399 33,461,261 35,497,980 37,658,671 39,950,877 42,382,607 44,962,351 47,699,119 50,602,468 53,682,539 56,950,087 60,416,525 64,093,956 67,995,226 72,133,958 76,524,607 Additional Increase in Taxation Levy for the year 1,940,021 (827,343) 451,123 1,264,540 1,341,509 1,423,164 1,509,790 1,601,688 1,699,179 1,802,605 1,912,325 2,028,725 2,152,210 2,283,211 2,422,185 2,569,618 2,726,026 2,891,954 3,067,980 3,254,723 3,452,831 3,662,998 3,885,957 Total Taxation Levy 25,041,511 24,214,168 24,665,291 26,166,618 27,759,327 29,448,981 31,241,481 33,143,087 35,160,440 37,300,585 39,570,996 41,979,603 44,534,817 47,245,562 50,121,304 53,172,087 56,408,565 59,842,041 63,484,505 67,348,679 71,448,057 75,796,956 80,410,564 Percentage Increase (Factoring in Assessment Growth) 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% 5.08% Assessment Growth Estimate (%) 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% $80,000,000 Road, Bridge and Major Culvert Assets Annual Infrastructure Funding Gap Analysis (Inflated) ` $60,000,000 $40,000,000 $20,000,000 $ Current Capital with Inflation Optimal Funding - Phase in Optimal Funding

88 District of Muskoka 2016 Asset Management Plan Financing Strategy E-2 Actual Actual Budget Description Prior Capital Expenses Roads 15,261,507 13,163,421 24,621,400 Table E-1B Tax Supported Capital Capital - Staff Roads - AMP 17,112,990 16,324,774 16,881,498 16,689,949 17,492,515 17,267,172 17,934,514 18,610,483 18,375,001 18,341,273 5,224,973 6,235,273 8,142,475 9,290,871 10,500,135 11,772,880 13,111,816 13,544,030 13,989,637 14,449,045 Roads - Growth 940, , , , ,014 1,210,543 1,097, ,525 1,816, ,052 1,915,273 1,936,341 1,957,640 1,979,175 2,000,945 2,022,956 2,045,208 2,067,706 2,090,450 2,113,445 Subtotal Capital - Staff 18,053,000 17,025,256 17,536,013 17,417,019 17,939,529 18,477,715 19,032,047 19,603,008 20,191,098 19,256,325 7,140,245 8,171,614 10,100,115 11,270,045 12,501,081 13,795,836 15,157,025 15,611,736 16,080,088 16,562,490 Expansion Projects - 125, , , , , , , ,244 2,793,780 17,509,026 18,034,297 18,575,326 19,132,586 19,706,563 20,297,760 20,906,693 21,533,894 22,179,911 22,845,308 Level of Service Adjustments Rehabiliation and Renewal Works Total Expenditures 15,261,507 13,163,421 24,621,400 18,053,000 17,150,401 17,667,353 17,554,812 18,084,157 18,629,580 19,191,453 19,770,271 20,398,342 22,050,106 24,649,272 26,205,911 28,675,441 30,402,631 32,207,644 34,093,596 36,063,718 37,145,630 38,259,998 39,407,798 Capital Financing Provincial/Federal Grants Non-Growth Related Debentures Growth Related Debentures Reserve Fund: Development Charges 672, ,835 1,515, , , , , ,014 1,210,543 1,097, ,525 1,816, ,052 1,915,273 1,936,341 1,957,640 1,979,175 2,000,945 2,022,956 1,407,747 1,350,122 1,366,323 1,382,719 Reserve Fund: Gas Tax Reserve/Reserve Fund: Other 13,926,661 12,523,726 23,004, Reserve Fund: DC Shortfall drawn from Roads Reserve 492, Other (Developer Contribution) 22,402 Other (Area Municipal Contribution) 38, , , , , , Gain/(Loss) on Sale Transfer from Operating Tax Supported Capital Reserve Fund(s) ,380,690 16,449,919 17,012,837 16,827,742 17,637,143 17,419,037 17,891,991 18,652,190 18,582,245 21,135,053 22,733,999 24,269,571 26,717,801 28,423,457 30,206,699 32,070,640 34,655,971 35,795,508 36,893,675 38,025,079 Total Capital Financing 15,152,882 13,271,091 24,621,400 18,053,000 17,150,401 17,667,353 17,554,812 18,084,157 18,629,580 19,191,453 19,770,271 20,398,342 22,050,106 24,649,272 26,205,911 28,675,441 30,402,631 32,207,644 34,093,596 36,063,718 37,145,630 38,259,998 39,407,798 Total Capital Expenses less Capital Financing 108,625 (107,671) Table E-2B Debt Requirements Non-Growth Related Debt Principal Year (Inflated) Budget Budget Total Annual Non-Growth Related Debt Charges Growth Related Debt Principal Year (Inflated) Budget Budget Budget Total Annual Growth Related Debt Charges Table E-3B Reserve and Reserve Fund Continuity Schedules Development Charges Reserve Fund Actual 2016 Roads Opening Balance 270, , ,290 1,273,236 1,854,720 2,386,004 3,224,411 3,315,488 3,537,894 3,885,659 3,418,340 3,874,385 3,338,049 2,788,479 2,134,331 1,464, ,209 73, Development Charge Proceeds 1,154, , ,611 1,208,590 1,223,093 1,237,770 1,252,623 1,267,655 1,282,866 1,298,261 1,313,840 1,329,606 1,345,561 1,271,951 1,287,215 1,302,661 1,318,293 1,334,113 1,350,122 1,366,323 1,382,719 Transfer to Capital 451, , , , , ,014 1,210,543 1,097, ,525 1,816, ,052 1,915,273 1,936,341 1,957,640 1,979,175 2,000,945 2,022,956 1,407,747 1,350,122 1,366,323 1,382,719 Transfer to Other Transfer to Operating (Debenture Payments) Interest Earned 7,148 14,768 18,816 27,410 35,261 47,651 48,997 52,284 57,424 50,517 57,257 49,331 41,209 31,542 21,636 11,486 1, Closing Balance 980, ,290 1,273,236 1,854,720 2,386,004 3,224,411 3,315,488 3,537,894 3,885,659 3,418,340 3,874,385 3,338,049 2,788,479 2,134,331 1,464, ,209 73, Required from Development Charges 940, , , , ,014 1,210,543 1,097, ,525 1,816, ,052 1,915,273 1,936,341 1,957,640 1,979,175 2,000,945 2,022,956 2,045,208 2,067,706 2,090,450 2,113,445 DC Shortfall 637, , , ,726 Capital Reserve/Reserve Funds (Roads) Actual Opening Balance 12,896,850 13,794,313 14,370,675 16,338,614 19,311,801 24,164,112 30,020,009 38,049,644 47,703,361 58,840,222 72,459,060 86,077, ,813, ,908, ,627, ,911, ,897, ,731, ,923, ,190, ,860,639 Transfers From Operating/Capital 15,400,000 16,744,678 18,176,401 19,700,628 21,322,948 23,049,394 24,886,362 26,840,732 28,919,491 31,130,260 33,481,017 35,980,327 38,637,270 41,461,371 44,462,835 47,652,480 51,041,576 54,642,482 58,467,988 62,531,661 66,847,888 Transfer to Capital 14,757,301 16,380,690 16,449,919 17,012,837 16,827,742 17,637,143 17,419,037 17,891,991 18,652,190 18,582,245 21,135,053 22,733,999 24,269,571 26,717,801 28,423,457 30,206,699 32,070,640 34,655,971 35,795,508 36,893,675 38,025,079 Transfer to Operating Interest Earned 254, , , , , , , , ,560 1,070,824 1,272,075 1,489,851 1,727,715 1,974,784 2,244,996 2,540,358 2,863,027 3,205,771 3,593,944 4,032,423 4,525,252 Closing Balance 13,794,313 14,370,675 16,338,614 19,311,801 24,164,112 30,020,009 38,049,644 47,703,361 58,840,222 72,459,060 86,077, ,813, ,908, ,627, ,911, ,897, ,731, ,923, ,190, ,860, ,208,700 Note: Closing reserve fund balance as a percentage of capital asset balance (inflated) 1.08% 1.09% 1.21% 1.39% 1.68% 2.03% 2.50% 3.04% 3.64% 4.36% 5.02% 5.71% 6.43% 7.14% 7.88% 8.65% 9.47% 10.29% 11.20% 12.20% 13.30% Net Expenditures Description Actual 2014 Actual 2015 Budget 2016 Table E-4B Tax Supported Operating Budget Summary Transportation - Roads 10,291,511 8,814,168 9,265,291 9,404,200 9,545,300 9,688,500 9,833,900 9,981,500 10,131,300 10,283,200 10,437,400 10,593,900 10,752,800 10,914,100 11,077,800 11,244,000 11,412,700 11,583,900 11,757,800 11,934,200 12,113,200 12,294,900 12,479,400 Transfers to Current Roads Reserve Funds (Capital Related) 14,750,000 15,400,000 15,400,000 Sub-total Transportation - Roads 25,041,511 24,214,168 24,665,291 9,404,200 9,545,300 9,688,500 9,833,900 9,981,500 10,131,300 10,283,200 10,437,400 10,593,900 10,752,800 10,914,100 11,077,800 11,244,000 11,412,700 11,583,900 11,757,800 11,934,200 12,113,200 12,294,900 12,479,400 Net Expenditures due to Level of Service Adjustments Transfer to Roads Tax Supported Capital Reserve Fund(s) ,744,678 18,176,401 19,700,628 21,322,948 23,049,394 24,886,362 26,840,732 28,919,491 31,130,260 33,481,017 35,980,327 38,637,270 41,461,371 44,462,835 47,652,480 51,041,576 54,642,482 58,467,988 62,531,661 66,847,888 New Debentures Payments New Debt - Growth Related New Debt - Non-Growth Related Transfer from Reserve Fund: Development Charges (Debt) Surplus/(Deficit) Adjustment Total Taxation Levy 25,041,511 24,214,168 24,665,291 26,148,878 27,721,701 29,389,128 31,156,848 33,030,894 35,017,662 37,123,932 39,356,891 41,724,160 44,233,817 46,894,427 49,715,070 52,705,371 55,875,535 59,236,380 62,799,376 66,576,682 70,581,188 74,826,561 79,327,288 Taxation Levy Analysis Prior Year Taxation Levy 23,101,490 25,041,511 24,214,168 24,665,291 26,148,878 27,721,701 29,389,128 31,156,848 33,030,894 35,017,662 37,123,932 39,356,891 41,724,160 44,233,817 46,894,427 49,715,070 52,705,371 55,875,535 59,236,380 62,799,376 66,576,682 70,581,188 74,826,561 Add: Provision for Assessment Growth (see below) , , , , , , , , , , , , , , , , , , , ,335 Current Year Taxation Levy at 0.0% Increase 23,101,490 25,041,511 24,214,168 24,902,078 26,399,907 27,987,829 29,671,264 31,455,954 33,347,991 35,353,832 37,480,322 39,734,717 42,124,712 44,658,462 47,344,613 50,192,335 53,211,343 56,411,940 59,805,049 63,402,250 67,215,818 71,258,767 75,544,896 Additional Increase in Taxation Levy for the year 1,940,021 (827,343) 451,123 1,246,800 1,321,794 1,401,299 1,485,584 1,574,940 1,669,671 1,770,100 1,876,569 1,989,443 2,109,105 2,235,965 2,370,457 2,513,036 2,664,192 2,824,440 2,994,327 3,174,432 3,365,370 3,567,794 3,782,392 Total Taxation Levy 25,041,511 24,214,168 24,665,291 26,148,878 27,721,701 29,389,128 31,156,848 33,030,894 35,017,662 37,123,932 39,356,891 41,724,160 44,233,817 46,894,427 49,715,070 52,705,371 55,875,535 59,236,380 62,799,376 66,576,682 70,581,188 74,826,561 79,327,288 Percentage Increase (Factoring in Assessment Growth) 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% 5.01% Assessment Growth Estimate (%) 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% Annual Infrastructure Funding Gap Analysis (Inflated) Road, Bridge and Major Culvert Assets - Phased-In Approach ` $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $ Current Capital Inflation Optimal Funding - Phase in Optimal Funding with

89 E-3 District of Muskoka 2016 Asset Management Plan Financing Strategy Scenario 1 - Calculated Risk Actual Actual Budget Description Prior Capital Expenses Hauled Sewage 934,016 (1,076) 1,570,432 Port Carling Locks 265,505 88, ,000 Airport 39,561 6,231, ,000 Administration Facilities 2,381,691 42, ,000 Long Term Care Home 317,807 4,731 92,600 Muskoka Paramedic Services 248, ,356 2,557,200 Community Housing 28, , ,000 Fleet Services 1,310, ,974 35,600 Information Technology Services 236, , ,000 Planning 19,437 9, ,000 Total Capital Expenses 5,781,776 7,941,779 6,272,832 Table E-1C Other Tax Supported Capital Capital Replacement Hauled Sewage 1,559, ,383, ,729, , ,154,733 Port Carling Locks 600, ,059, ,870-1,591, , , ,012 Airport ,457, ,239, ,678,494-8,912, ,452 5,408,228 Administration Facilities , , , , , ,122 Long Term Care Home 130, ,941 64, , ,011-39, , ,561 Muskoka Paramedic Services 666,799 2,093,597 86, , ,061 2,054, , ,136 1,963, , , ,091 2,319, ,892 1,684, ,565 2,476, Community Housing 857, ,791 95, , , , , , , ,262 Fleet Services 1,007, , ,584 1,848,077 1,498,075 92,015 83, , , ,296 1,546,705 1,267, , ,672 3,435,633 98, ,814 1,464,841 3,322, ,560 Information Technology Services 339,950 28,119 13, ,351 67,474 31,648 15, ,177 75,943 35,620 17, ,877 85,474 40,091 19, ,061 96,202 45,123 22, ,418 General Administration - 60, , ,387 13,535 13,683 13,834 13,986 14,140 14,296 14,453 14,612 14,772 Community Services Planning 110, , ,340 75,539 22,671 49, ,484 24,615 86, , , , , , , , , , , ,831 Capital - AMP 5,271,712 2,521, ,245 3,047,479 8,305,576 2,604,999 1,408,143 1,569,981 1,748,832 13,036,901 4,053,872 2,167,303 4,005,709 3,425,886 14,158,721 2,607, ,581 4,125,596 4,554,720 10,876,500 Capital Expansion Projects 2,342,400 1,109,104 1,961,604 3,211,525 1,468,451 1,534, ,078 1,437, ,341 1,877,308 2,552,568 2,629,145 2,708,019 2,789,260 2,872,937 2,959,125 3,047,899 3,139,336 3,233,516 3,330,522 Level of Service Adjustments Rehabiliation and Renewal Works Total Expenditures 5,781,776 7,941,779 6,272,832 7,614,112 3,630,510 2,327,850 6,259,003 9,774,027 4,139,414 2,404,222 3,007,088 2,492,172 14,914,208 6,606,440 4,796,448 6,713,728 6,215,146 17,031,658 5,567,072 3,742,479 7,264,932 7,788,237 14,207,022 Capital Financing Provincial/Federal Grants 8, ,889, Internal Debt ,800, Growth Related Debentures Reserve Fund: Development Charges Hauled Sewage 100,349 (28,128) 433, , ,553 62,366 63,114 63,872 64,638 65, ,994 68,611 88,256 89,315 90,387 91,472 92,569 93,680 94,804 95,942 Reserve Fund: Gas Tax Reserve Fund: Debt Reduction - 2,885, Reserve Fund: Environment 253,929 27,052 1,136,649 2,012, ,182 1,008,171 1,109,280 4,175, , , ,384-5,729,551 1,113,343 1,151,680 1,191,221 1,232,004 1,883,525 1,317,444 1,362,182 1,408,319 1,455,898 3,659,695 DC Shortfall - Taken from Environment Reserve 579, ,178 60, , ,203 87, , , , , , , , , , , ,758 Reserve/Reserve Fund: Other 4,638,567 4,436,444 4,127, Other (Area Municipal Contribution) - 318, ,000-10, , ,633 2,662 2,691 2,721 2,751 2,781 2,811 2,842 2,874 2,905 Other (Sale of Asset) 205,024 52, Other (Energy Rebates) 7,216 10, Transfer from Operating Tax Supported Capital Reserve Fund(s) ,712,000 2,741, ,948 5,027,063 5,349,498 3,248,280 1,957,149 2,207,916 2,492,172 9,184,657 5,230,647 3,379,431 5,254,252 4,711,936 13,073,943 3,972,422 2,100,043 5,573,276 6,045,885 10,257,721 Total Capital Financing 5,793,336 7,702,269 6,272,832 7,614,112 3,630,510 2,327,850 6,259,003 9,774,027 4,139,414 2,404,222 3,007,088 2,492,172 14,914,208 6,606,440 4,796,448 6,713,728 6,215,146 17,031,658 5,567,072 3,742,480 7,264,932 7,788,237 14,207,021 Total Capital Expenses less Capital Financing (11,560) 239, (0) (0) (0) (0) Table E-2C Debt Requirements Internal Debt Principal Year (Inflated) Budget Budget ,800, , , , , , Total Annual Non-Growth Related Debt Charges 1,800, , , , , ,924 Growth Related Debt Principal Year (Inflated) Budget Budget Budget Total Annual Growth Related Debt Charges Table E-3C Reserve and Reserve Fund Continuity Schedules Development Charge Reserve Funds Actual 2016 Hauled Sewage Opening Balance 156, , , , , , (0) 0 (0) - Development Charge Proceeds 151,039 78,153 79,090 61,626 62,366 63,114 63,872 64,638 65,414 66,199 66,993 67,797 68,611 88,256 89,315 90,387 91,472 92,569 93,680 94,804 95,942 Transfer to Capital 4, , ,553 62,366 63,114 63,872 64,638 65, ,994 68,611 88,256 89,315 90,387 91,472 92,569 93,680 94,804 95,942 Transfer to Other Transfer to Operating (Debenture Payments) Interest Earned 2,976 5,763 2, , (0) 0 (0) - (0) Closing Balance 306, , , , , (0) 0 (0) - (0) Required from Development Charges - 295, , , , , , , , , , , , , , , , ,700 DC Shortfall ,178 60, , ,203 87, , , , , , , , , , , ,758 Capital Reserve/Reserve Funds Actual 2016 (Tax Supported - ALL) Opening Balance 38,191,463 49,875,681 54,229,069 59,302,150 67,335,019 71,976,646 77,203,001 85,414,053 95,766, ,676, ,055, ,429, ,364, ,660, ,476, ,096, ,458, ,625, ,380, ,141, ,637,207 Transfers From Operating/Capital 12,373,840 6,879,473 7,814,278 8,745,817 9,668,690 10,575,853 11,459,332 12,309,721 13,117,376 13,871,303 14,558,723 15,165,435 15,675,464 16,070,694 16,331,779 16,436,550 16,138,972 15,855,397 15,333,963 14,541,507 13,441,331 Transfer to Capital 1,230,907 3,327,500 2,741, ,948 5,027,063 5,349,498 3,248,280 1,957,149 2,207,916 2,492,172 9,184,657 5,230,647 3,379,431 5,254,252 4,711,936 13,073,943 3,972,422 2,100,043 5,573,276 6,045,885 10,257,721 Transfer to Other Transfer to Operating 63,500 Interest Earned 604, ,415 Closing Balance 49,875,681 54,229,069 59,302,150 67,335,019 71,976,646 77,203,001 85,414,053 95,766, ,676, ,055, ,429, ,364, ,660, ,476, ,096, ,458, ,625, ,380, ,141, ,637, ,820,817

90 District of Muskoka E Asset Management Plan Financing Strategy Scenario 1 - Calculated Risk Table E-4C Tax Supported Operating Budget Summary Actual Actual Budget Description Net Expenditures All Departments (excluding AMP) 30,946,412 33,596,349 37,308,252 37,867,876 38,435,894 39,012,432 39,597,619 40,191,583 40,794,457 41,406,374 42,027,469 42,657,881 43,297,750 43,947,216 44,606,424 45,275,520 45,954,653 46,643,973 47,343,633 48,053,787 48,774,594 49,506,213 50,248,806 Hauled Sewage 518, , , , , , , , , , , , , , , , , , , , , , ,100 Port Carling Locks 158, , , , , , , , , , , , , , , , , , , , , , ,200 Airport 305, , , , , , , , , , , , , , , , , , , , , , ,100 Administration Facilities 477, , , , , , , , , , , , , , , , , , , , , , ,600 Long Term Care Home 775, , , , ,000 1,003,800 1,018,800 1,034,000 1,049,400 1,065,100 1,081,100 1,097,300 1,113,700 1,130,400 1,147,300 1,164,600 1,182,000 1,199,700 1,217,800 1,236,000 1,254,500 1,273,300 1,292,300 Muskoka Paramedic Services 4,960,050 4,778,471 5,374,809 5,455,400 5,537,300 5,620,300 5,704,600 5,790,100 5,876,900 5,965,000 6,054,500 6,145,300 6,237,500 6,331,100 6,426,000 6,522,300 6,620,200 6,719,500 6,820,300 6,922,500 7,026,400 7,131,800 7,238,800 Community Housing 2,005,911 1,773,523 1,941,834 1,970,900 2,000,400 2,030,500 2,060,900 2,091,800 2,123,200 2,155,100 2,187,400 2,220,300 2,253,500 2,287,300 2,321,600 2,356,500 2,391,800 2,427,600 2,463,900 2,500,900 2,538,500 2,576,600 2,615,200 Information Technology Services (215,421) (266,897) (118,551) (120,200) (122,000) (123,700) (125,600) (127,500) (129,400) (131,300) (133,300) (135,300) (137,300) (139,400) (141,600) (143,700) (145,900) (148,100) (150,300) (152,400) (154,700) (157,000) (159,300) Fleet Services (787,758) (846,861) (825,750) (242,000) (236,700) (231,100) (225,000) (218,600) (211,900) (204,700) (197,000) (189,000) (180,500) (171,600) (162,200) (152,200) (141,700) (130,600) (119,000) (106,800) (94,100) (80,700) (66,600) Sub-total 8,198,955 7,608,427 8,793,348 9,455,601 9,606,200 9,759,700 9,915,500 10,073,800 10,234,700 10,398,600 10,565,400 10,734,800 10,907,000 11,082,000 11,259,900 11,441,200 11,625,600 11,813,200 12,004,000 12,198,100 12,395,500 12,596,300 12,800,400 Net Expenditures due to Level of Service Adjustments Transfer to Other Reserve Funds 2,865,946 3,819,357 2,127,569 6,879,473 7,814,278 8,745,817 9,668,690 10,575,853 11,459,332 12,309,721 13,117,376 13,871,303 14,558,723 15,165,435 15,675,464 16,070,694 16,331,779 16,436,550 16,138,972 15,855,397 15,333,963 14,541,507 13,441,331 Transfer to Roads Capital Reserve Fund 15,400,000 15,400,000 15,400,000 17,353,503 19,482,318 21,801,595 24,327,570 27,077,964 30,072,001 33,330,636 36,876,295 40,733,521 44,928,840 49,491,137 54,451,748 59,844,565 65,706,466 72,077,456 79,000,735 86,523,583 94,696, ,576, ,221,326 Transfer to Environment Capital Reserve Fund 2,500,000 2,500,000 2,500,000 2,537,500 2,613,600 2,692,000 2,772,800 2,856,000 2,941,700 3,030,000 3,120,900 3,214,500 3,310,900 3,410,200 3,512,500 3,617,900 3,726,400 3,838,200 3,953,300 4,071,900 4,194,100 4,319,900 4,449,500 Transfer to PC Locks Capital Reserve Fund 250, , ,000 Transfer to Airport Capital Reserve Fund 488, , ,000 Transfer to Pines Capital Reserve Fund 775, , ,118 Transfer to Ambulance Capital Reserve Fund 550, , ,000 Transfer to Community Housing Capital Reserve Fund 377, , ,000 Transfer to Fleet Capital Reserve 787, , ,750 Transfer to Computer Equipment Reserve 120, , ,000 Transfer to Corporate Capital Reserve Fund 922, , ,551 New Debentures Payments New Debt - Growth Related New Debt - Non-Growth Related , , , , ,924 Transfer from Reserve Fund: Development Charges (Debt) Surplus/(Deficit) Adjustment Total Taxation Levy 64,182,745 67,230,668 70,426,588 74,093,953 77,952,290 82,011,544 86,282,179 90,775,200 95,502, ,475, ,707, ,212, ,003, ,095, ,506, ,249, ,344, ,809, ,662, ,924, ,617, ,762, ,383,287 Taxation Levy Analysis Prior Year Taxation Levy - 64,182,745 67,230,668 70,426,588 74,093,953 77,952,290 82,011,544 86,282,179 90,775,200 95,502, ,475, ,707, ,212, ,003, ,095, ,506, ,249, ,344, ,809, ,662, ,924, ,617, ,762,064 Add: Provision for Assessment Growth (see below) , , , , , , , ,563 1,014,791 1,067,635 1,123,231 1,181,721 1,243,258 1,307,999 1,376,111 1,447,770 1,523,161 1,602,477 1,685,924 1,773,716 Current Year Taxation Levy at 0.0% Increase - 64,182,745 67,230,668 71,102,683 74,805,255 78,700,632 82,798,855 87,110,488 91,646,642 96,419, ,439, ,722, ,279, ,126, ,277, ,749, ,557, ,721, ,257, ,185, ,527, ,302, ,535,780 Additional Increase in Taxation Levy for the year - 3,047,923 3,195,920 2,991,270 3,147,035 3,310,912 3,483,324 3,664,712 3,855,548 4,056,320 4,267,546 4,489,774 4,723,572 4,969,544 5,228,327 5,500,585 5,787,020 6,088,370 6,405,414 6,738,967 7,089,889 7,459,084 7,847,506 Total Taxation Levy - 67,230,668 70,426,588 74,093,953 77,952,290 82,011,544 86,282,179 90,775,200 95,502, ,475, ,707, ,212, ,003, ,095, ,506, ,249, ,344, ,809, ,662, ,924, ,617, ,762, ,383,287 Percentage Increase (Factoring in Assessment Growth) 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% 4.21% Assessment Growth Estimate (%) 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% Annual Infrastructure Funding Gap Analysis (Inflated) Tax Support Assets - Calculated Risk ` $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ Current Capital with Inflation Optimal Funding - Phase in Optimal Funding

91 E-5 District of Muskoka 2016 Asset Management Plan Financing Strategy Scenario 2 - Phased In Actual Actual Budget Description Prior Capital Expenses Hauled Sewage 934,016 (1,076) 1,570,432 Port Carling Locks 265,505 88, ,000 Airport 39,561 6,231, ,000 Administration Facilities 2,381,691 42, ,000 Long Term Care Home 317,807 4,731 92,600 Muskoka Paramedic Services 248, ,356 2,557,200 Community Housing 28, , ,000 Fleet Services 1,310, ,974 35,600 Information Technology Services 236, , ,000 Planning 19,437 9, ,000 Total Capital Expenses 5,781,776 7,941,779 6,272,832 Table E-1D Other Tax Supported Capital Capital Hauled Sewage 529, , , , , , , , , , , , , , , , , , , ,404 Port Carling Locks 299, , , , , , , , , , , , , , , , , , , ,523 Airport - 484, , , , ,995 1,061,615 1,192,869 1,331,043 1,476,434 1,629,351 1,566,349 1,498,101 1,424,348 1,344,822 1,385,167 1,426,722 1,469,524 1,513,609 Administration Facilities , , , , , ,122 Long Term Care Home 130, ,941 64, , ,011-39, , ,561 Muskoka Paramedic Services 634, , , , , , , , , , , , , , , ,077 1,017,719 1,048,251 1,079,698 1,112,089 Community Housing 857, ,791 95, , , , , , , ,262 Fleet Services 680, , , , , , , , , , , , , ,724 1,028,686 1,059,546 1,091,333 1,124,073 1,157,795 1,192,529 Information Technology Services 339,950 28,119 13, ,351 67,474 31,648 15, ,177 75,943 35,620 17, ,877 85,474 40,091 19, ,061 96,202 45,123 22, ,418 General Administration - 60, , ,387 13,535 13,683 13,834 13,986 14,140 14,296 14,453 14,612 14,772 Community Services Planning 110, , ,340 75,539 22,671 49, ,484 24,615 86, , , , , , , , , , , ,831 Capital - AMP 3,580,825 2,973,189 3,024,317 3,046,200 4,038,004 3,587,688 3,653,685 3,885,928 3,880,432 4,993,879 5,024,138 5,242,341 6,517,745 4,950,405 5,729,516 5,260,911 5,058,054 5,153,209 6,166,160 7,383,121 Capital Expansion Projects 2,342,400 1,109,104 1,961,604 3,211,525 1,468,451 1,534, ,078 1,437, ,341 1,877,308 2,552,568 2,629,145 2,708,019 2,789,260 2,872,937 2,959,125 3,047,899 3,139,336 3,233,516 3,330,522 Subtotal Capital - Staff 5,923,225 4,082,293 4,985,921 6,257,724 5,506,456 5,122,103 4,649,763 5,323,036 4,623,773 6,871,187 7,576,706 7,871,486 9,225,764 7,739,665 8,602,454 8,220,036 8,105,953 8,292,545 9,399,676 10,713,643 Level of Service Adjustments Rehabiliation and Renewal Works Total Expenditures 5,781,776 7,941,779 6,272,832 5,923,225 4,082,293 4,985,921 6,257,724 5,506,456 5,122,103 4,649,763 5,323,036 4,623,773 6,871,187 7,576,706 7,871,486 9,225,764 7,739,665 8,602,454 8,220,036 8,105,953 8,292,545 9,399,676 10,713,643 Capital Financing Provincial/Federal Grants 8, ,889, Non-Growth Related Debentures Growth Related Debentures Reserve Fund: Development Charges Hauled Sewage 100,349 (28,128) 433, , ,867 62,366 63,114 63,872 64,638 65, ,391 68,611 88,256 89,315 90,387 91,472 92,569 93,680 94,804 95,942 Reserve Fund: Gas Tax Reserve Fund: Debt Reduction - 2,885, Reserve Fund: Environment 253,929 27,052 1,136, ,956 1,128,521 1,569,870 1,687,831 1,387,497 1,250, ,570 1,277, , ,819 1,824,887 1,884,570 1,946,098 2,009,527 2,074,914 2,142,319 2,211,803 2,283,428 2,357,260 2,433,366 DC Shortfall - Taken from Environment Reserve 579, ,864 60, , ,203 87, , , , , , , , , , , ,758 Reserve/Reserve Fund: Other 4,638,567 4,436,444 4,127, Other (Area Municipal Contribution) - 318, ,000-10, , ,633 2,662 2,691 2,721 2,751 2,781 2,811 2,842 2,874 2,905 Other (Sale of Asset) 205,024 52, Other (Energy Rebates) 7,216 10, Transfer from Operating Tax Supported Capital Reserve Fund(s) ,051,370 2,647,641 2,809,320 4,447,233 3,869,791 3,617,185 3,570,493 3,872,700 3,953,074 6,180,368 5,489,369 5,721,578 7,011,411 5,458,931 6,253,350 5,800,512 5,613,896 5,725,779 6,755,961 7,990,671 Total Capital Financing 5,793,336 7,702,269 6,272,832 5,923,225 4,082,293 4,985,921 6,257,724 5,506,456 5,122,103 4,649,763 5,323,036 4,623,773 6,871,187 7,576,705 7,871,485 9,225,764 7,739,664 8,602,454 8,220,036 8,105,954 8,292,545 9,399,676 10,713,642 Total Capital Expenses less Capital Financing (11,560) 239, (0) (0) (0) Table E-2D Debt Requirements Non-Growth Related Debt Principal Year (Inflated) Budget Budget Total Annual Non-Growth Related Debt Charges Growth Related Debt Principal Year (Inflated) Budget Budget Budget Total Annual Growth Related Debt Charges Table E-3D Reserve and Reserve Fund Continuity Schedules Development Charge Reserve Funds Actual 2016 Roads and Hauled Sewage Opening Balance Development Charge Proceeds Transfer to Capital Transfer to Other Transfer to Operating (Debenture Payments) Interest Earned Closing Balance Required from Development Charges DC Shortfall Capital Reserve/Reserve Funds Actual 2016 (Tax Supported - ALL) Opening Balance 38,191,463 49,875,681 53,139,822 57,180,252 61,434,951 64,431,321 68,387,780 72,981,929 78,009,231 83,121,959 88,542,763 92,124,743 96,785, ,600, ,507, ,348, ,768, ,012, ,804, ,840, ,190,609 Transfers From Operating/Capital 12,373,840 6,315,510 6,688,072 7,064,018 7,443,604 7,826,249 8,211,334 8,597,795 8,985,428 9,373,879 9,762,347 10,150,077 10,536,160 10,919,327 11,299,045 11,674,119 12,043,782 12,406,494 12,761,138 13,106,512 13,441,331 Transfer to Capital 1,230,907 3,051,370 2,647,641 2,809,320 4,447,233 3,869,791 3,617,185 3,570,493 3,872,700 3,953,074 6,180,368 5,489,369 5,721,578 7,011,411 5,458,931 6,253,350 5,800,512 5,613,896 5,725,779 6,755,961 7,990,671 Transfer to Other Transfer to Operating 63,500 Interest Earned 604,786 Closing Balance 49,875,681 53,139,822 57,180,252 61,434,951 64,431,321 68,387,780 72,981,929 78,009,231 83,121,959 88,542,763 92,124,743 96,785, ,600, ,507, ,348, ,768, ,012, ,804, ,840, ,190, ,641,268

92 District of Muskoka E-6 Description Actual Actual Asset Management Plan Financing Strategy Scenario 2 - Phased In Table E-4D Tax Supported Operating Budget Summary Budget Net Expenditures All Departments (excluding AMP) 30,946,412 33,596,349 37,308,252 37,867,876 38,435,894 39,012,432 39,597,619 40,191,583 40,794,457 41,406,374 42,027,469 42,657,881 43,297,750 43,947,216 44,606,424 45,275,520 45,954,653 46,643,973 47,343,633 48,053,787 48,774,594 49,506,213 50,248,806 Hauled Sewage 518, , , , , , , , , , , , , , , , , , , , , , ,100 Port Carling Locks 158, , , , , , , , , , , , , , , , , , , , , , ,200 Airport 305, , , , , , , , , , , , , , , , , , , , , , ,100 Administration Facilities 477, , , , , , , , , , , , , , , , , , , , , , ,600 Long Term Care Home 775, , , , ,000 1,003,800 1,018,800 1,034,000 1,049,400 1,065,100 1,081,100 1,097,300 1,113,700 1,130,400 1,147,300 1,164,600 1,182,000 1,199,700 1,217,800 1,236,000 1,254,500 1,273,300 1,292,300 Muskoka Paramedic Services 4,960,050 4,778,471 5,374,809 5,455,400 5,537,300 5,620,300 5,704,600 5,790,100 5,876,900 5,965,000 6,054,500 6,145,300 6,237,500 6,331,100 6,426,000 6,522,300 6,620,200 6,719,500 6,820,300 6,922,500 7,026,400 7,131,800 7,238,800 Community Housing 2,005,911 1,773,523 1,941,834 1,970,900 2,000,400 2,030,500 2,060,900 2,091,800 2,123,200 2,155,100 2,187,400 2,220,300 2,253,500 2,287,300 2,321,600 2,356,500 2,391,800 2,427,600 2,463,900 2,500,900 2,538,500 2,576,600 2,615,200 Information Technology Services (215,421) (266,897) (118,551) (120,200) (122,000) (123,700) (125,600) (127,500) (129,400) (131,300) (133,300) (135,300) (137,300) (139,400) (141,600) (143,700) (145,900) (148,100) (150,300) (152,400) (154,700) (157,000) (159,300) Fleet Services (787,758) (846,861) (825,750) (242,000) (236,700) (231,100) (225,000) (218,600) (211,900) (204,700) (197,000) (189,000) (180,500) (171,600) (162,200) (152,200) (141,700) (130,600) (119,000) (106,800) (94,100) (80,700) (66,600) Sub-total 8,198,955 7,608,427 8,793,348 9,455,601 9,606,200 9,759,700 9,915,500 10,073,800 10,234,700 10,398,600 10,565,400 10,734,800 10,907,000 11,082,000 11,259,900 11,441,200 11,625,600 11,813,200 12,004,000 12,198,100 12,395,500 12,596,300 12,800,400 Net Expenditures due to Level of Service Adjustments Transfer to Other Reserve Funds 2,865,946 3,819,357 2,127,569 6,315,510 6,688,072 7,064,018 7,443,604 7,826,249 8,211,334 8,597,795 8,985,428 9,373,879 9,762,347 10,150,077 10,536,160 10,919,327 11,299,045 11,674,119 12,043,782 12,406,494 12,761,138 13,106,512 13,441,331 Transfer to Roads Capital Reserve Fund 15,400,000 15,400,000 15,400,000 16,326,852 17,297,563 18,314,215 19,378,783 20,493,432 21,660,421 22,882,208 24,161,050 25,499,512 26,900,170 28,365,815 29,899,358 31,503,737 33,182,121 34,937,816 36,774,070 38,694,681 40,703,301 42,803,746 45,000,000 Transfer to Environment Capital Reserve Fund 2,500,000 2,500,000 2,500,000 2,537,500 2,613,600 2,692,000 2,772,800 2,856,000 2,941,700 3,030,000 3,120,900 3,214,500 3,310,900 3,410,200 3,512,500 3,617,900 3,726,400 3,838,200 3,953,300 4,071,900 4,194,100 4,319,900 4,449,500 Transfer to PC Locks Capital Reserve Fund 250, , ,000 Transfer to Airport Capital Reserve Fund 488, , ,000 Transfer to Pines Capital Reserve Fund 775, , ,118 Transfer to Ambulance Capital Reserve Fund 550, , ,000 Transfer to Community Housing Capital Reserve Fund 377, , ,000 Transfer to Fleet Capital Reserve 787, , ,750 Transfer to Computer Equipment Reserve 120, , ,000 Transfer to Corporate Capital Reserve Fund 922, , ,551 New Debentures Payments New Debt - Growth Related New Debt - Non-Growth Related Transfer from Reserve Fund: Development Charges (Debt) Surplus/(Deficit) Adjustment Total Taxation Levy 64,182,745 67,230,668 70,426,588 72,503,339 74,641,329 76,842,365 79,108,306 81,441,064 83,842,612 86,314,977 88,860,247 91,480,572 94,178,167 96,955,308 99,814, ,757, ,787, ,907, ,118, ,424, ,828, ,332, ,940,037 Taxation Levy Analysis Prior Year Taxation Levy - 64,182,745 67,230,668 70,426,588 72,503,339 74,641,329 76,842,365 79,108,306 81,441,064 83,842,612 86,314,977 88,860,247 91,480,572 94,178,167 96,955,308 99,814, ,757, ,787, ,907, ,118, ,424, ,828, ,332,671 Add: Provision for Assessment Growth (see below) , , , , , , , , , , , , , ,474 1,015,563 1,045,510 1,076,340 1,108,080 1,140,755 1,174,394 Current Year Taxation Levy at 0.0% Increase - 64,182,745 67,230,668 71,102,683 73,199,371 75,357,886 77,580,052 79,867,746 82,222,898 84,647,501 87,143,600 89,713,306 92,358,786 95,082,277 97,886, ,772, ,744, ,803, ,952, ,195, ,533, ,969, ,507,064 Additional Increase in Taxation Levy for the year - 3,047,923 3,195,920 1,400,656 1,441,958 1,484,480 1,528,254 1,573,319 1,619,714 1,667,476 1,716,647 1,767,267 1,819,381 1,873,031 1,928,263 1,985,125 2,043,661 2,103,926 2,165,966 2,229,837 2,295,591 2,363,283 2,432,973 Total Taxation Levy - 67,230,668 70,426,588 72,503,339 74,641,329 76,842,365 79,108,306 81,441,064 83,842,612 86,314,977 88,860,247 91,480,572 94,178,167 96,955,308 99,814, ,757, ,787, ,907, ,118, ,424, ,828, ,332, ,940,037 Percentage Increase (Factoring in Assessment Growth) 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% Assessment Growth Estimate (%) 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% 0.96% Annual Infrastructure Funding Gap Analysis (Inflated) Other Tax Supported Assets - Phased-In Approach ` $15,000,000 $10,000,000 $5,000,000 $ Current Capital with Inflation Optimal Funding - Phase in Optimal Funding

93 APPENDIX F WATER ASSET MANAGEMENT STRATEGY & FINANCING STRATEGY

94 District of Muskoka 2016 Asset Management Plan Financing Strategy F-1 Table F-1A Water Capital Actual Actual Budget Description Prior Capital Expenses Water 1,157,043 1,540,574 2,556, Capital New Capital - Non-Growth 2,365,200 3,600,575 1,057, ,930,012 4,016,807 4,060,992 4,105,663 4,150,825 4,196,485 4,242,646 4,289,315 4,336,497 4,384,199 4,432,425 New Capital - Growth ,930 2,610,863 2,639,582 2,668,617 2,697,972 2,727,650 2,757,654 2,787,988 2,818,656 2,849,661 2,881,008 Replace/Upgrade/Decommission-AMP 11,941, , , ,765 5,319, , ,229-78, ,451-8,413,244-20,187, ,196,100 1,478,837 Rehabilitation and Renewal 2,565, ,300 1,535, , , ,298 1,425,355 3,263,055-70,622 2,404,447 2,430,896 2,457,636 2,484,670 2,512,001 2,539,633 2,567,569 2,595,813 2,624,367 2,653,235 R&M/Studies 226, ,942-55,698 57,356 59,149-62, ,568 66, , , , , , , , , , ,163 Subtotal Capital 17,098,294 4,008,817 2,982,108 1,417,038 1,822,258 6,271,053 1,532,267 4,207, ,568 2,213,390 9,420,495 9,260,804 17,775,917 9,465,663 29,757,589 9,675,053 9,781,478 9,889,074 21,193,955 11,586,668 Level of Service Adjustments Rehabiliation and Renewal Works Total Expenditures 1,157,043 1,540,574 2,556,000 17,098,294 4,008,817 2,982,108 1,417,038 1,822,258 6,271,053 1,532,267 4,207, ,568 2,213,390 9,420,495 9,260,804 17,775,917 9,465,663 29,757,589 9,675,053 9,781,478 9,889,074 21,193,955 11,586,668 Capital Financing Provincial/Federal Grants 1, Internal Debt Non-Growth Related Debentures - - 3,000, Growth Related Debentures Reserve Fund: Development Charges 98, , ,930 2,610,863 2,639,582 2,668,617 2,697,972 2,727,650 2,757,654 2,787,988 1,060,724 1,024,599 1,036,894 Reserve Fund: Gas Tax 65, ,000 2,286,275 1,082, ,625 1,698, ,692 1,524,664 Reserve Fund: Other Obligatory - - Reserve/Reserve Fund: Other 844,227 1,170,801 2,526, Other (Area Municipal Contributions) 124,276-30,000 Transfer from Operating Reserve Fund: New Capital ,235,294 1,722,542 1,899,477 1,417,038 1,822,258 6,271, ,642 2,508,870 (530,124) 620,796 6,809,632 6,621,222 15,107,300 6,767,690 27,029,940 6,917,399 6,993,490 8,828,350 20,169,356 10,549,774 Total Capital Financing 1,134,051 1,563,724 2,556,000 17,098,294 4,008,817 2,982,108 1,417,038 1,822,258 6,271,053 1,532,267 4,207, ,568 2,213,390 9,420,495 9,260,804 17,775,917 9,465,663 29,757,589 9,675,053 9,781,478 9,889,074 21,193,955 11,586,668 Total Capital Expenses less Capital Financing 22,991 (23,151) Table F-2A Debt Requirements Non-Growth Related Debt Principal Budget 2016 Year (Inflated) Budget ,000, , , , , , , , , , , , , , , , , , , , Total Annual Non-Growth Related Debt Charges 3,000, , , , , , , , , , , , , , , , , , , ,728 Internal Debt Principal Budget 2016 Year (Inflated) Budget Total Annual Non-Growth Related Debt Charges Growth Related Debt Principal Budget 2016 Year (Inflated) Budget Total Annual Growth Related Debt Charges

95 Table F-3A Reserve and Reserve Fund Continuity Schedules Development Charges Reserve Fund Actual 2016 Water Opening Balance 469, ,654 1,563,723 2,306,162 3,342,765 4,406,941 5,499,247 6,620,253 7,770,536 8,950,685 10,161,300 11,334,041 9,956,367 8,542,107 6,929,729 5,274,987 3,577,059 1,835,106 48, Development Charge Proceeds 562, , , , ,049 1,011,037 1,023,170 1,035,448 1,047,873 1,060,447 1,073,173 1,086,051 1,099, , , , ,581 1,000,444 1,012,449 1,024,599 1,036,894 Transfer to Capital 199, ,930 2,610,863 2,639,582 2,668,617 2,697,972 2,727,650 2,757,654 2,787,988 1,060,724 1,024,599 1,036,894 Transfer to Other Transfer to Operating (Debenture Payments) Interest Earned 7,997 23,109 34,081 49,400 65,127 81,270 97, , , , , , , ,410 77,955 52,863 27, Closing Balance 840,654 1,563,723 2,306,162 3,342,765 4,406,941 5,499,247 6,620,253 7,770,536 8,950,685 10,161,300 11,334,041 9,956,367 8,542,107 6,929,729 5,274,987 3,577,059 1,835,106 48, Required from Development Charges ,930 2,610,863 2,639,582 2,668,617 2,697,972 2,727,650 2,757,654 2,787,988 2,818,656 2,849,661 2,881,008 Required Debenture Funding 1,757,932 1,825,063 1,844,114 F-2 Actual 2016 Gas Tax Reserve Funds Opening Balance 2,441,292 4,095,486 4,019,193 2,971,967 1,651,842 1,533,282 1,461,051 1,628,146 2,832,886 3,307,832 4,756,128 5,523,120 5,625,599 5,752,379 5,904,526 6,083,139 6,289,350 6,524,325 6,789,267 7,085,414 7,414,041 Transfers From Operating/Capital 1,800,477 1,800,477 1,886,214 1,923,900 1,962,400 2,001,700 2,041,700 2,082,500 2,124,200 2,166,700 2,210,034 2,468,324 2,517,691 2,568,044 2,619,405 2,671,793 2,725,229 2,779,734 2,835,329 2,892,035 2,949,876 Transfer to Capital - Water - 863,000 2,286,275 1,082, ,625 1,698, ,692 1,524, Transfer to Capital - Wastewater 190,377 1,073, ,085 2,185,806 2,103,620 2,095,522 1,898,667 2,448,982 2,475,921 2,503,156 2,530,691 2,558,529 2,586,672 2,615,126 2,643,892 2,672,975 2,702,378 Transfer to Operating Interest Earned 44,094 59,397 43,921 24,411 22,659 21,592 24,061 41,865 48,884 70,288 81,622 83,137 85,011 87,259 89,899 92,946 96, , , , ,923 Closing Balance 4,095,486 4,019,193 2,971,967 1,651,842 1,533,282 1,461,051 1,628,146 2,832,886 3,307,832 4,756,128 5,523,120 5,625,599 5,752,379 5,904,526 6,083,139 6,289,350 6,524,325 6,789,267 7,085,414 7,414,041 7,776,462 Actual 2016 Capital Reserve/Reserve Funds (Water) Opening Balance 7,443,034 9,407, ,575 2,831,393 5,958,439 10,268,153 14,913,923 15,833,544 23,269,294 29,692,188 40,483,149 51,487,809 57,754,747 65,445,388 65,664,840 75,435,332 65,928,621 77,898,271 91,240, ,261, ,377,818 Transfers From Operating/Capital 3,724,347 4,002,862 4,334,517 4,938,467 5,575,007 6,247,625 6,956,681 7,704,511 8,492,963 9,662,564 10,864,552 12,223,052 13,344,690 14,356,336 15,423,374 16,548,914 17,735,843 18,987,796 20,307,688 21,699,201 23,166,084 Transfer to Capital 1,889,358 13,235,294 1,722,542 1,899,477 1,417,038 1,822,258 6,271, ,642 2,508,870 (530,124) 620,796 6,809,632 6,621,222 15,107,300 6,767,690 27,029,940 6,917,399 6,993,490 8,828,350 20,169,356 10,549,774 Transfer to Other Transfer to Operating Interest Earned 129,359 2,624 41,843 88, , , , , , , , , , ,416 1,114, ,315 1,151,206 1,348,389 1,540,805 1,586,864 1,799,912 Closing Balance 9,407, ,575 2,831,393 5,958,439 10,268,153 14,913,923 15,833,544 23,269,294 29,692,188 40,483,149 51,487,809 57,754,747 65,445,388 65,664,840 75,435,332 65,928,621 77,898,271 91,240, ,261, ,377, ,794,040 Note: Closing reserve fund balance as a percentage of capital asset balance 1.56% 0.03% 0.46% 0.96% 1.63% 2.35% 2.46% 3.58% 4.52% 6.09% 7.67% 8.51% 9.53% 9.46% 10.75% 9.29% 10.86% 12.58% 14.22% 14.49% 16.25% Table F-4A Water Operating Budget Summary Actual Budget Budget Description Net Expenditures Operating Expenditures 4,422,061 5,019,326 5,269,367 5,348,400 5,428,600 5,510,000 5,592,700 5,676,600 5,761,700 5,848,100 5,935,800 6,024,800 6,115,200 6,206,900 6,300,000 6,394,500 6,490,400 6,587,800 6,686,600 6,786,900 6,888,700 6,992,000 7,096,900 Net Internal Charges 1,439, , , , , ,500 1,010,400 1,025,600 1,041,000 1,056,600 1,072,400 1,088,500 1,104,800 1,121,400 1,138,200 1,155,300 1,172,600 1,190,200 1,208,100 1,226,200 1,244,600 1,263,300 1,282,200 Other Revenue (167,999) (199,655) (110,850) (112,500) (114,200) (115,900) (117,600) (119,300) (121,100) (122,900) (124,800) (126,700) (128,600) (130,500) (132,400) (134,300) (136,200) (138,300) (140,400) (142,600) (144,800) (147,000) (149,200) Net Expenditures due to Level of Service Adjustments Transfer to Capital Transfers to Reserve Funds Transfer to Obligatory Reserve/Reserve Funds Transfer to Other Reserve/Reserve Funds Transfers to Current Reserve Funds (Capital Related) 2,488,131 2,637,685 3,369, Transfer to Water Capital Reserve Fund(s) ,002,862 4,334,517 4,938,467 5,575,007 6,247,625 6,956,681 7,704,511 8,492,963 9,662,564 10,864,552 12,223,052 13,344,690 14,356,336 15,423,374 16,548,914 17,735,843 18,987,796 20,307,688 21,699,201 23,166,084 Debenture Payments Existing Debt 2,924,368 2,926,531 2,428,480 2,314,461 2,291,529 2,268,596 2,246,233 2,222,730 2,199,797 2,176,864 2,154,250 1,793,399 1,445, , , , , , , , , , ,312 New Debt - Growth Related New Debt - Non-Growth Related , , , , , , , , , , , , , , , , , , ,728 Transfer from Reserve Fund: Development Charges (Debt) Surplus/(Deficit) Adjustment Water Service Revenue (User Fees and Levy) 11,106,524 11,300,782 11,908,433 12,519,523 13,161,973 13,837,390 14,547,467 15,293,983 16,078,806 16,903,903 17,771,340 18,683,291 19,642,039 20,649,986 21,709,656 22,823,705 23,994,922 25,226,241 26,520,746 27,881,680 29,312,451 30,816,643 32,398,024 Percentage Increase 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% 5.13% Annual Infrastructure Funding Gap Analysis (Inflated) Water - Calculated Risk $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ Current Capital with Inflation Optimal Funding - Phase in Optimal Funding

96 District of Muskoka 2016 Asset Management Plan Financing Strategy F-3 Table F-1A Water Capital Actual Actual Budget Description Prior Capital Expenses Water 1,157,043 1,540,574 2,556, Capital New Capital - Non-Growth 2,365,200 3,600,575 1,057, ,930,012 4,016,807 4,060,992 4,105,663 4,150,825 4,196,485 4,242,646 4,289,315 4,336,497 4,384,199 4,432,425 New Capital - Growth ,930 2,610,863 2,639,582 2,668,617 2,697,972 2,727,650 2,757,654 2,787,988 2,818,656 2,849,661 2,881,008 Replace/Upgrade/Decommission-AMP 3,111,100 2,311,380 3,333,010 3,923,429 3,535,990 3,642,070 3,751,332 3,863,872 5,116,871 5,270,377 1,507,913 1,553,151 1,919,694 1,977,285 2,036,604 2,097,702 2,160,633 2,225,452 2,292,215 2,360,982 Rehabilitation and Renewal 2,565, ,300 1,535, , , ,298 1,425,355 3,263,055-70,622 2,404,447 2,430,896 2,457,636 2,484,670 2,512,001 2,539,633 2,567,569 2,595,813 2,624,367 2,653,235 R&M/Studies 226, ,942-55,698 57,356 59,149-62, ,568 66, , , , , , , , , , ,163 Subtotal Capital 8,267,700 6,320,197 5,925,927 4,870,507 4,577,483 4,593,516 5,176,687 7,189,651 5,375,438 7,405,480 10,667,957 10,813,955 11,282,368 11,442,948 11,606,389 11,772,754 11,942,111 12,114,526 12,290,070 12,468,813 Level of Service Adjustments Rehabiliation and Renewal Works Total Expenditures 1,157,043 1,540,574 2,556,000 8,267,700 6,320,197 5,925,927 4,870,507 4,577,483 4,593,516 5,176,687 7,189,651 5,375,438 7,405,480 10,667,957 10,813,955 11,282,368 11,442,948 11,606,389 11,772,754 11,942,111 12,114,526 12,290,070 12,468,813 Capital Financing Provincial/Federal Grants 1, Internal Debt Non-Growth Related Debentures Growth Related Debentures Reserve Fund: Development Charges 98, , ,930 2,610,863 2,639,582 2,668,617 2,697,972 2,727,650 2,757,654 2,787,988 1,060,724 1,024,599 1,036,894 Reserve Fund: Gas Tax 65, ,000 2,286,275 Reserve Fund: Other Obligatory - - Reserve/Reserve Fund: Other 844,227 1,170,801 2,526, Other (Area Municipal Contributions) 124,276-30,000 Transfer from Operating Reserve Fund: New Capital - - 7,404,700 4,033,922 5,925,927 4,870,507 4,577,483 4,593,516 5,176,687 7,189,651 5,375,438 7,337,550 8,057,095 8,174,373 8,613,750 8,744,976 8,878,739 9,015,100 9,154,123 11,053,802 11,265,471 11,431,919 Total Capital Financing 1,134,051 1,563,724 2,556,000 8,267,700 6,320,197 5,925,927 4,870,507 4,577,483 4,593,516 5,176,687 7,189,651 5,375,438 7,405,480 10,667,957 10,813,955 11,282,368 11,442,948 11,606,389 11,772,754 11,942,111 12,114,526 12,290,070 12,468,813 Total Capital Expenses less Capital Financing 22,991 (23,151) Table F-2A Debt Requirements Non-Growth Related Debt Principal Budget 2016 Year (Inflated) Budget Total Annual Non-Growth Related Debt Charges Internal Debt Principal Budget 2016 Year (Inflated) Budget Total Annual Non-Growth Related Debt Charges Growth Related Debt Principal Budget 2016 Year (Inflated) Budget Total Annual Growth Related Debt Charges

97 Table F-3A Reserve and Reserve Fund Continuity Schedules Development Charges Reserve Fund Actual 2016 Water Opening Balance 469, ,654 1,563,723 2,306,162 3,342,765 4,406,941 5,499,247 6,620,253 7,770,536 8,950,685 10,161,300 11,334,041 9,956,367 8,542,107 6,929,729 5,274,987 3,577,059 1,835,106 48, Development Charge Proceeds 562, , , , ,049 1,011,037 1,023,170 1,035,448 1,047,873 1,060,447 1,073,173 1,086,051 1,099, , , , ,581 1,000,444 1,012,449 1,024,599 1,036,894 Transfer to Capital 199, ,930 2,610,863 2,639,582 2,668,617 2,697,972 2,727,650 2,757,654 2,787,988 1,060,724 1,024,599 1,036,894 Transfer to Other Transfer to Operating (Debenture Payments) Interest Earned 7,997 23,109 34,081 49,400 65,127 81,270 97, , , , , , , ,410 77,955 52,863 27, Closing Balance 840,654 1,563,723 2,306,162 3,342,765 4,406,941 5,499,247 6,620,253 7,770,536 8,950,685 10,161,300 11,334,041 9,956,367 8,542,107 6,929,729 5,274,987 3,577,059 1,835,106 48, Required from Development Charges ,930 2,610,863 2,639,582 2,668,617 2,697,972 2,727,650 2,757,654 2,787,988 2,818,656 2,849,661 2,881,008 Required Debenture Funding 1,757,932 1,825,063 1,844,114 F-4 Actual 2016 Gas Tax Reserve Funds Opening Balance 2,441,292 4,095,486 4,019,193 2,971,967 2,750,712 2,648,635 2,593,135 2,777,210 2,120,207 2,052,023 2,954,374 3,215,194 3,283,054 3,374,696 3,491,178 3,633,591 3,803,058 4,000,739 4,227,828 4,485,553 4,775,182 Transfers From Operating/Capital 1,800,477 1,800,477 1,886,214 1,923,900 1,962,400 2,001,700 2,041,700 2,082,500 2,124,200 2,166,700 2,210,034 2,468,324 2,517,691 2,568,044 2,619,405 2,671,793 2,725,229 2,779,734 2,835,329 2,892,035 2,949,876 Transfer to Capital - Water - 863,000 2,286, Transfer to Capital - Wastewater 190,377 1,073, ,085 2,185,806 2,103,620 2,095,522 1,898,667 2,770,836 2,222,710 1,308,010 1,996,728 2,448,982 2,475,921 2,503,156 2,530,691 2,558,529 2,586,672 2,615,126 2,643,892 2,672,975 2,702,378 Transfer to Operating Interest Earned 44,094 59,397 43,921 40,651 39,142 38,322 41,043 31,333 30,325 43,661 47,515 48,518 49,872 51,594 53,698 56,203 59,124 62,480 66,289 70,569 75,340 Closing Balance 4,095,486 4,019,193 2,971,967 2,750,712 2,648,635 2,593,135 2,777,210 2,120,207 2,052,023 2,954,374 3,215,194 3,283,054 3,374,696 3,491,178 3,633,591 3,803,058 4,000,739 4,227,828 4,485,553 4,775,182 5,098,020 Actual 2016 Capital Reserve/Reserve Funds (Water) Opening Balance 7,443,034 9,407,382 6,090,891 6,721,737 6,048,927 7,077,059 9,093,832 11,836,717 14,779,619 16,514,782 21,294,737 25,364,197 30,131,647 35,977,448 42,478,142 50,011,410 58,648,328 68,463,815 79,537,452 90,168, ,134,782 Transfers From Operating/Capital 3,724,347 3,998,195 4,565,432 5,163,724 5,794,052 6,459,864 7,161,474 7,901,172 8,680,753 9,840,693 11,032,170 12,379,249 13,488,488 14,486,688 15,539,159 16,648,932 17,818,807 19,052,330 20,352,322 21,722,360 23,166,084 Transfer to Capital 1,889,358 7,404,700 4,033,922 5,925,927 4,870,507 4,577,483 4,593,516 5,176,687 7,189,651 5,375,438 7,337,550 8,057,095 8,174,373 8,613,750 8,744,976 8,878,739 9,015,100 9,154,123 11,053,802 11,265,471 11,431,919 Transfer to Other Transfer to Operating Interest Earned 129,359 90,013 99,336 89, , , , , , , , , , , , ,724 1,011,781 1,175,430 1,332,540 1,509,381 1,708,034 Closing Balance 9,407,382 6,090,891 6,721,737 6,048,927 7,077,059 9,093,832 11,836,717 14,779,619 16,514,782 21,294,737 25,364,197 30,131,647 35,977,448 42,478,142 50,011,410 58,648,328 68,463,815 79,537,452 90,168, ,134, ,576,981 Note: Closing reserve fund balance as a percentage of capital asset balance 1.56% 0.98% 1.05% 0.92% 1.04% 1.30% 1.65% 2.00% 2.17% 2.71% 3.13% 3.62% 4.19% 4.80% 5.49% 6.25% 7.09% 7.99% 8.80% 9.67% 10.63% Table F-4A Water Operating Budget Summary Actual Budget Budget Description Net Expenditures Operating Expenditures 4,422,061 5,019,326 5,269,367 5,348,400 5,428,600 5,510,000 5,592,700 5,676,600 5,761,700 5,848,100 5,935,800 6,024,800 6,115,200 6,206,900 6,300,000 6,394,500 6,490,400 6,587,800 6,686,600 6,786,900 6,888,700 6,992,000 7,096,900 Net Internal Charges 1,439, , , , , ,500 1,010,400 1,025,600 1,041,000 1,056,600 1,072,400 1,088,500 1,104,800 1,121,400 1,138,200 1,155,300 1,172,600 1,190,200 1,208,100 1,226,200 1,244,600 1,263,300 1,282,200 Other Revenue (167,999) (199,655) (110,850) (112,500) (114,200) (115,900) (117,600) (119,300) (121,100) (122,900) (124,800) (126,700) (128,600) (130,500) (132,400) (134,300) (136,200) (138,300) (140,400) (142,600) (144,800) (147,000) (149,200) Net Expenditures due to Level of Service Adjustments Transfer to Capital Transfers to Reserve Funds Transfer to Obligatory Reserve/Reserve Funds Transfer to Other Reserve/Reserve Funds Transfers to Current Reserve Funds (Capital Related) 2,488,131 2,637,685 3,369, Transfer to Water Capital Reserve Fund(s) ,998,195 4,565,432 5,163,724 5,794,052 6,459,864 7,161,474 7,901,172 8,680,753 9,840,693 11,032,170 12,379,249 13,488,488 14,486,688 15,539,159 16,648,932 17,818,807 19,052,330 20,352,322 21,722,360 23,166,084 Debenture Payments Existing Debt 2,924,368 2,926,531 2,428,480 2,314,461 2,291,529 2,268,596 2,246,233 2,222,730 2,199,797 2,176,864 2,154,250 1,793,399 1,445, , , , , , , , , , ,312 New Debt - Growth Related New Debt - Non-Growth Related Transfer from Reserve Fund: Development Charges (Deb Surplus/(Deficit) Adjustment Water Service Revenue (User Fees and Levy) 11,106,524 11,300,782 11,908,433 12,514,856 13,152,161 13,821,920 14,525,785 15,265,494 16,042,871 16,859,836 17,718,403 18,620,692 19,568,929 20,565,455 21,612,727 22,713,330 23,869,979 25,085,531 26,362,982 27,705,487 29,116,357 30,599,074 32,157,296 Percentage Increase 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% 5.09% Annual Infrastructure Funding Gap Analysis (Inflated) Water Assets - Phased-In Approach $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ Current Capital with Inflation Optimal Funding - Phase in Optimal Funding

98 APPENDIX G WASTEWATER ASSET MANAGEMENT STRATEGY & FINANCING STRATEGY

99 District of Muskoka 2016 Asset Management Plan Financing Strategy - Scenario 1 G-1 Table G-1A Wastewater Capital Actual Actual Budget Description Prior Capital Expenses Wastewater 11,433,195 7,224,586 15,765, Capital New Capital - Non-Growth 14,212,790 6,637,721 20,220,000 13,901,250 15,165, ,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 New Capital - Growth 760, , ,117,429 2,140,721 2,164,269 2,188,076 2,212,145 2,236,478 2,261,080 2,285,951 2,311,097 2,336,519 Replace/Upgrade/Decommission - AMP 20,332, , ,787 11,475, , , ,538-6,492,231-16,515, ,692,467 1,493,987 Rehabilitation and Renewal 1,000, , , ,209 1,900, , , , ,102 66,539 1,261,596 1,275,474 1,289,504 1,303,689 1,318,029 1,332,527 1,347,185 1,362,004 1,376,986 1,392,133 R&M/Studies 1,100, , , , , , , , , , , , , , , , , , , ,615 Subtotal Capital - Staff 37,405,734 7,693,710 21,056,708 15,536,217 18,136,224 12,501, ,115 1,601, ,347 1,108,385 6,615,146 6,321,053 12,857,207 6,409,383 22,969,801 6,499,668 6,545,556 6,591,949 36,331,319 8,180,259 Level of Service Adjustments Rehabiliation and Renewal Works Total Expenditures 11,433,195 7,224,586 15,765,500 37,405,734 7,693,710 21,056,708 15,536,217 18,136,224 12,501, ,115 1,601, ,347 1,108,385 6,615,146 6,321,053 12,857,207 6,409,383 22,969,801 6,499,668 6,545,556 6,591,949 36,331,319 8,180,259 Capital Financing Provincial/Federal Grants 2,942, ,099 - OCIF 1,697,587 1,153,743 1,200,000 1,200,000 1,200, CWWF ,657,239 Non-Growth Related Debentures ,000,000 5,000, Internal Debt ,175,696 1,179,500 6,814,140 6,889,095 5,223, Growth Related Debentures Reserve Fund: Development Charges 303, ,341 4,222, , , ,117,429 2,180,952 2,246,381 2,313,772 2,383,185 2,454,681 2,528,321 2,604,171 2,682,296 2,762,765 Reserve Fund: Gas Tax 1,188,382 1,080, ,000 1,073, ,085 2,185,806 2,103,620 2,095,522 1,898,667 2,448,982 2,475,921 2,503,156 2,530,691 2,558,529 2,586,672 2,615,126 2,643,892 2,672,975 2,702,378 Reserve Fund: Environment 1,438,087 1,208,546 3,458, ,200 3,852,576 5,315,795 3,381, , , , , , , , , , , , ,335 Reserve Fund: Debt Reduction 4,138, ,300 Other (Area Municipal Contributions) - 1, ,000 44, , ,848 70,978 73, , , Other (Local Improvements) , Transfer from Operating 2,594,360 3,646,551 5,590, Reserve Fund: New Capital 12,183, ,819 5,540,968 1,962,088 4,192,467 10,531, ,074 1,130, ,347 1,001,348 1,403, ,233 7,422, ,478 17,301, , , ,904 30,158,247 1,872,781 Total Capital Financing 12,606,104 7,436,195 15,765,500 37,405,734 7,693,710 21,056,708 15,536,217 18,136,224 12,501, ,115 1,601, ,347 1,108,385 6,615,146 6,321,053 12,857,207 6,409,383 22,969,801 6,499,668 6,545,556 6,591,949 36,331,319 8,180,259 Total Capital Expenses less Capital Financing (1,172,909) (211,609) Table G-2A Debt Requirements Non-Growth Related Debt Principal Budget 2016 Year (Inflated) Budget ,000,000 1,203,639 1,203,639 1,203,639 1,203,639 1,203,639 1,203,639 1,203,639 1,203,639 1,203,639 1,203,639 1,203,639 1,203,639 1,203,639 1,203,639 1,203,639 1,203,639 1,203,639 1,203,639 1,203, ,000, , , , , , , , , , , , , , , , Total Annual Non-Growth Related Debt Charges 20,000, ,203,639 1,203,639 1,203,639 1,203,639 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 Internal Debt Principal Budget 2016 Year (Inflated) Budget ,175, , , , , , , , , , , ,179, , , , , , , , , , , ,814, , , , , , , , , , , ,889, , , , , , , , , , , ,223, , , , , , , , , , , Total Annual Internal Debt Charges 21,282, , ,374 1,130,496 1,979,859 2,623,889 2,623,889 2,623,889 2,623,889 2,623,889 2,623,889 2,478,936 2,333,514 1,493, ,

100 Table G-3A Reserve and Reserve Fund Continuity Schedules Development Charges Reserve Fund 2016 Actuals (All Wastewater Rate Supported Funds) Opening Balance 23, ,002 1,141,122 2,120,652 3,752,428 5,427,880 7,147,894 8,913,372 10,725,231 12,584,405 14,491,847 16,448,524 16,306,232 16,159,287 15,775,199 15,380,028 14,973,569 14,555,612 14,125,946 13,684,353 13,230,615 Development Charge Proceeds 835,419 1,121,265 1,134,720 1,576,321 1,595,237 1,614,380 1,633,753 1,653,358 1,673,198 1,693,276 1,713,596 1,734,159 1,754,969 1,547,049 1,565,614 1,584,401 1,603,414 1,622,655 1,642,127 1,661,833 1,681,775 Transfer to Capital 98, , , ,117,429 2,140,721 2,164,269 2,188,076 2,212,145 2,236,478 2,261,080 2,285,951 2,311,097 2,336,519 Transfer to Other Transfer to Operating (Debenture Payments) Interest Earned 3,028 16,864 31,340 55,455 80, , , , , , , , , , , , , , , , ,638 Closing Balance 763,002 1,141,122 2,120,652 3,752,428 5,427,880 7,147,894 8,913,372 10,725,231 12,584,405 14,491,847 16,448,524 16,306,232 16,159,287 15,775,199 15,380,028 14,973,569 14,555,612 14,125,946 13,684,353 13,230,615 12,764,509 Required from Development Charges 760, , ,117,429 2,140,721 2,164,269 2,188,076 2,212,145 2,236,478 2,261,080 2,285,951 2,311,097 2,336,519 Post Period Benefit Required Debenture Funding Actuals Gas Tax Reserve Funds (Wastewater) Opening Balance 2,441,292 4,095,486 4,019,193 2,971,967 1,651,842 1,533,282 1,461,051 1,628,146 2,832,886 3,307,832 4,756,128 5,523,120 5,625,599 5,752,379 5,904,526 6,083,139 6,289,350 6,524,325 6,789,267 7,085,414 7,414,041 Transfers From Operating/Capital 1,800,477 1,800,477 1,886,214 1,923,900 1,962,400 2,001,700 2,041,700 2,082,500 2,124,200 2,166,700 2,210,034 2,468,324 2,517,691 2,568,044 2,619,405 2,671,793 2,725,229 2,779,734 2,835,329 2,892,035 2,949,876 Transfer to Capital - Wastewater 190,377 1,073, ,085 2,185,806 2,103,620 2,095,522 1,898,667 2,448,982 2,475,921 2,503,156 2,530,691 2,558,529 2,586,672 2,615,126 2,643,892 2,672,975 2,702,378 Transfer to Capital - Water - 863,000 2,286,275 1,082, ,625 1,698, ,692 1,524, Transfer to Operating Interest Earned 44,094 59,397 43,921 24,411 22,659 21,592 24,061 41,865 48,884 70,288 81,622 83,137 85,011 87,259 89,899 92,946 96, , , , ,923 Closing Balance 4,095,486 4,019,193 2,971,967 1,651,842 1,533,282 1,461,051 1,628,146 2,832,886 3,307,832 4,756,128 5,523,120 5,625,599 5,752,379 5,904,526 6,083,139 6,289,350 6,524,325 6,789,267 7,085,414 7,414,041 7,776,462 G Actuals Debt Reduction Reserve Fund (Wastewater) Opening Balance 13,091,852 19,061,664 22,695,182 13,360,969 4,830, ,178 (2,930,139) 3,619,899 9,253,187 13,955,975 17,714,305 21,529,010 25,400,935 29,330,939 33,319,893 37,368,682 41,478,202 45,649,365 49,883,096 54,180,332 58,542,028 Transfers From Operating/Capital 4,805,199 5,157,817 5,126,785 4,922,259 5,016,590 4,657,783 3,872,653 2,872,653 1,872, , , ,653 1,017,606 1,163,028 2,003,149 2,852,512 3,496,542 3,496,542 3,496,542 3,496,542 3,496,542 Debt Repayments 936, ,374 1,130,496 1,979,859 2,623,889 2,623,889 2,623,889 2,623,889 2,623,889 2,623,889 2,478,936 2,333,514 1,493, , Transfer to Capital - Wastewater - 1,175,696 1,179,500 6,814,140 6,889,095 5,223, Transfer to Other 684,000 13,478,950 7,000,000 3,400,000 5,000,000 Transfer to Operating Interest Earned 227, , ,453 71,392 10,333 (43,303) 53, , , , , , , , , , , , , , ,579 Closing Balance 19,061,664 22,695,182 13,360,969 4,830, ,178 (2,930,139) 3,619,899 9,253,187 13,955,975 17,714,305 21,529,010 25,400,935 29,330,939 33,319,893 37,368,682 41,478,202 45,649,365 49,883,096 54,180,332 58,542,028 62,969, Actuals Environment Reserve Funds (Wastewater) Opening Balance 6,613,934 9,034,089 9,233,799 7,815,534 4,096,770 2,512, ,282 2,922,552 5,606,636 7,836,892 11,000,532 8,411,374 9,771,764 10,969,990 12,158,752 13,317,382 13,825,126 14,907,669 15,953,219 16,959,349 17,923,538 Transfers From Operating/Capital 2,500,000 2,888,662 2,901,992 2,915,522 2,929,255 2,943,194 2,957,342 2,971,702 2,986,277 3,001,071 3,016,087 3,031,329 3,046,799 3,062,501 3,078,438 3,094,615 3,111,034 3,127,700 3,144,615 3,161,784 3,179,211 Transfer to Capital - Wastewater 176, ,200 3,852,576 5,315,795 3,381, , , , , , , , , , , , ,335 Transfer to Other - Hauled Sewage 19,561 2,012, ,182 1,008,171 1,109,280 4,175, , , ,384-5,729,551 1,113,343 1,151,680 1,191,221 1,232,004 1,883,525 1,317,444 1,362,182 1,408,319 1,455,898 3,659,695 Transfer to Other - DC Shortfall ,864 60, , ,203 87, , , , , , , , , , , ,758 Interest Earned 115, , ,501 60,543 37,126 11,073 43,190 82, , , , , , , , , , , , , ,149 Closing Balance 9,034,089 9,233,799 7,815,534 4,096,770 2,512, ,282 2,922,552 5,606,636 7,836,892 11,000,532 8,411,374 9,771,764 10,969,990 12,158,752 13,317,382 13,825,126 14,907,669 15,953,219 16,959,349 17,923,538 16,656,110 Capital Reserve/Reserve Funds 2016 Actuals (Wastewater) Opening Balance 6,456,862 7,328,915 (87,640) 3,466,505 2,443,757 5,340,413 5,856, ,567 5,788,191 11,467,396 18,610,365 26,539,678 32,886,256 43,709,707 49,337,083 63,624,587 63,411,448 81,852, ,870, ,546, ,831,908 Transfers From Operating/Capital 3,486,097 4,768,676 4,017,735 4,482,105 4,779,822 4,621,738 5,080,936 5,843,159 6,640,572 7,515,286 8,538,449 7,263,729 11,176,727 12,321,031 14,206,717 16,151,228 17,941,805 19,142,992 20,400,384 21,717,081 23,095,563 Transfer to Capital 2,702,424 12,183, ,819 5,540,968 1,962,088 4,192,467 10,531, ,074 1,130, ,347 1,001,348 1,403, ,233 7,422, ,478 17,301, , , ,904 30,158,247 1,872,781 Transfer to Operating 25, Interest Earned 113,480 (1,295) 51,229 36,115 78,922 86,545 6,082 85, , , , , , , , ,115 1,209,650 1,505,471 1,825,810 1,726,580 2,070,820 Closing Balance 7,328,915 (87,640) 3,466,505 2,443,757 5,340,413 5,856, ,567 5,788,191 11,467,396 18,610,365 26,539,678 32,886,256 43,709,707 49,337,083 63,624,587 63,411,448 81,852, ,870, ,546, ,831, ,125,510 Note: Closing reserve fund balance as a percentage of capital asset balance 1.23% -0.01% 0.57% 0.40% 0.86% 0.93% 0.06% 0.90% 1.76% 2.83% 3.99% 4.89% 6.42% 7.17% 9.15% 9.02% 11.51% 14.17% 17.00% 15.90% 18.87% Table G-4A Wastewater Operating Budget Summary Actual Actual Budget Description Net Expenditures Operating Expenditures 5,069,727 5,835,968 5,825,037 5,912,400 6,001,100 6,091,100 6,182,500 6,275,200 6,369,300 6,464,800 6,561,800 6,660,200 6,760,100 6,861,500 6,964,400 7,068,900 7,174,900 7,282,500 7,391,700 7,502,600 7,615,100 7,729,300 7,845,200 Net Internal Charges 1,342, , , , , , , , ,700 1,004,500 1,019,600 1,034,900 1,050,400 1,066,200 1,082,200 1,098,400 1,114,900 1,131,600 1,148,600 1,165,800 1,183,300 1,201,000 1,219,000 Other Revenue (542,431) (452,047) (366,580) (372,100) (377,700) (383,400) (389,100) (394,900) (400,900) (406,900) (413,000) (419,200) (425,500) (431,900) (438,400) (445,000) (451,600) (458,400) (465,300) (472,300) (479,300) (486,500) (493,800) Net Expenditures due to Level of Service Adjustments Transfer to Capital Transfers to Reserve Funds Transfers to Current Reserve Funds (Capital Related) 2,431,251 2,188,620 3,486, Transfer to Wastewater Capital Reserve Fund(s) ,768,676 4,017,735 4,482,105 4,779,822 4,621,738 5,080,936 5,843,159 6,640,572 7,515,286 8,538,449 7,263,729 11,176,727 12,321,031 14,206,717 16,151,228 17,941,805 19,142,992 20,400,384 21,717,081 23,095,563 Debenture Payments Existing Debt 5,297,965 5,528,902 4,502,560 3,794,582 3,773,918 3,769,944 3,267,908 3,244,036 2,440,085 2,412,782 2,386,237 2,320,225 2,145,265 4,309,431 1,474,102 1,453,120 1,432,642 1,412,165 1,391,968 1,371,209 1,350,732 1,330,254 1,309,833 New Debt - Growth Related Internal Debt , ,374 1,130,496 1,979,859 2,623,889 2,623,889 2,623,889 2,623,889 2,623,889 2,623,889 2,478,936 2,333,514 1,493, , New Debt - Non-Growth Related ,203,639 1,203,639 1,203,639 1,203,639 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 1,604,852 Transfer from Reserve Fund: Development Charges (Debt) Surplus/(Deficit) Adjustment Wastewater Service Revenue (User Fees and Levy) 13,598,922 13,970,094 14,377,304 15,022,258 15,696,145 16,400,262 17,135,965 17,904,672 18,707,861 19,547,082 20,423,949 21,340,152 22,297,454 23,297,701 24,342,817 25,434,817 26,575,803 27,767,974 29,013,624 30,315,153 31,675,068 33,095,987 34,580,648 Percentage Increase 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% $25,000,000 Annual Infrastructure Funding Gap Analysis (Inflated) Wastewater Assets - Calculated Risk $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ Current Capital with Inflation Optimal Funding - Phase in Optimal Funding

101 District of Muskoka 2016 Asset Management Plan Financing Strategy - Scenario 2 G-3 Table G-1B Wastewater Capital Actual Actual Budget Description Prior Capital Expenses Wastewater 11,433,195 7,224,586 15,765, Capital New Capital - Non-Growth 14,212,790 6,637,721 20,220,000 13,901,250 15,165, ,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 2,328,004 New Capital - Growth 760, , ,117,429 2,140,721 2,164,269 2,188,076 2,212,145 2,236,478 2,261,080 2,285,951 2,311,097 2,336,519 Replace/Upgrade/Decommission - AMP 3,303,184 3,402,279 3,504,348 3,609,478 3,717,762 3,829,295 3,944,174 4,062,499 4,184,374 4,309,906 4,439,203 4,572,379 4,709,550 4,850,837 4,996,362 5,146,253 5,300,640 5,459,659 5,623,449 5,792,153 Rehabilitation and Renewal 1,000, , , ,209 1,900, , , , ,102 66,539 1,261,596 1,275,474 1,289,504 1,303,689 1,318,029 1,332,527 1,347,185 1,362,004 1,376,986 1,392,133 R&M/Studies 1,100, , , , , , , , , , , , , , , , , , , ,615 Subtotal Capital - Staff 20,376,884 11,095,989 24,561,056 18,710,877 21,219,200 4,854,783 4,569,289 5,218,846 4,831,721 4,776,342 10,716,810 10,893,432 11,074,527 11,260,220 11,450,640 11,645,920 11,846,196 12,051,608 12,262,302 12,478,424 Level of Service Adjustments Rehabiliation and Renewal Works Total Expenditures 11,433,195 7,224,586 15,765,500 20,376,884 11,095,989 24,561,056 18,710,877 21,219,200 4,854,783 4,569,289 5,218,846 4,831,721 4,776,342 10,716,810 10,893,432 11,074,527 11,260,220 11,450,640 11,645,920 11,846,196 12,051,608 12,262,302 12,478,424 Capital Financing Provincial/Federal Grants 2,942, ,099 - OCIF 1,697,587 1,153,743 1,200,000 1,200,000 1,200, CWWF ,657,239 Non-Growth Related Debentures ,000, Internal Debt ,175,696 1,179,500 6,814,140 3,889,095 5,223, Growth Related Debentures Reserve Fund: Development Charges 303, ,341 4,222, , , ,117,429 2,180,952 2,246,381 2,313,772 2,383,185 2,454,681 2,528,321 2,604,171 2,682,296 2,762,765 Reserve Fund: Gas Tax 1,188,382 1,080, ,000 1,073, ,085 2,185,806 2,103,620 2,095,522 1,898,667 2,770,836 2,222,710 1,308,010 1,996,728 2,448,982 2,475,921 2,503,156 2,530,691 2,558,529 2,586,672 2,615,126 2,643,892 2,672,975 2,702,378 Reserve Fund: Environment 1,438,087 1,208,546 3,458, ,200 3,852,576 5,315,795 3,381, , , , , , , , , , , , ,335 Reserve Fund: Debt Reduction 4,138, ,300 Other (Area Municipal Contributions) - 1, ,000 44, , ,848 70,978 73, , , Other (Local Improvements) , Transfer from Operating 2,594,360 3,646,551 5,590, Reserve Fund: New Capital 10,155,085 3,917,099 9,045,315 8,136,748 7,275,442 2,885,137 1,725,412 2,525,436 3,523,711 2,672,577 5,504,819 5,571,611 5,640,094 5,710,314 5,782,321 5,856,163 5,931,893 6,009,563 6,089,229 6,170,946 Total Capital Financing 12,606,104 7,436,195 15,765,500 20,376,884 11,095,989 24,561,056 18,710,877 21,219,200 4,854,783 4,569,289 5,218,846 4,831,721 4,776,342 10,716,810 10,893,432 11,074,527 11,260,220 11,450,640 11,645,920 11,846,196 12,051,608 12,262,302 12,478,424 Total Capital Expenses less Capital Financing (1,172,909) (211,609) Table G-2B Debt Requirements Non-Growth Related Debt Principal Budget 2016 Year (Inflated) Budget ,000, , , , , , , , , , , , , , , , Total Annual Non-Growth Related Debt Charges 5,000, , , , , , , , , , , , , , , ,213 Internal Debt Principal Budget 2016 Year (Inflated) Budget ,175, , , , , , , , , , , ,179, , , , , , , , , , , ,814, , , , , , , , , , , ,889, , , , , , , , , , , ,223, , , , , , , , , , , Total Annual Internal Debt Charges 18,282, , ,374 1,130,496 1,609,986 2,254,016 2,254,016 2,254,016 2,254,016 2,254,016 2,254,016 2,109,063 1,963,642 1,123, ,

102 Table G-3B Reserve and Reserve Fund Continuity Schedules Development Charges Reserve Fund 2016 Actuals (All Wastewater Rate Supported Funds) Opening Balance 23, ,002 1,141,122 2,120,652 3,752,428 5,427,880 7,147,894 8,913,372 10,725,231 12,584,405 14,491,847 16,448,524 16,306,232 16,159,287 15,775,199 15,380,028 14,973,569 14,555,612 14,125,946 13,684,353 13,230,615 Development Charge Proceeds 835,419 1,121,265 1,134,720 1,576,321 1,595,237 1,614,380 1,633,753 1,653,358 1,673,198 1,693,276 1,713,596 1,734,159 1,754,969 1,547,049 1,565,614 1,584,401 1,603,414 1,622,655 1,642,127 1,661,833 1,681,775 Transfer to Capital 98, , , ,117,429 2,140,721 2,164,269 2,188,076 2,212,145 2,236,478 2,261,080 2,285,951 2,311,097 2,336,519 Transfer to Other Transfer to Operating (Debenture Payments) Interest Earned 3,028 16,864 31,340 55,455 80, , , , , , , , , , , , , , , , ,638 Closing Balance 763,002 1,141,122 2,120,652 3,752,428 5,427,880 7,147,894 8,913,372 10,725,231 12,584,405 14,491,847 16,448,524 16,306,232 16,159,287 15,775,199 15,380,028 14,973,569 14,555,612 14,125,946 13,684,353 13,230,615 12,764,509 Required from Development Charges 760, , ,117,429 2,140,721 2,164,269 2,188,076 2,212,145 2,236,478 2,261,080 2,285,951 2,311,097 2,336,519 Post Period Benefit Required Debenture Funding G Actuals Gas Tax Reserve Funds (Wastewater) Opening Balance 2,441,292 4,095,486 4,019,193 2,971,967 2,750,712 2,648,635 2,593,135 2,777,210 2,120,207 2,052,023 2,954,374 3,215,194 3,283,054 3,374,696 3,491,178 3,633,591 3,803,058 4,000,739 4,227,828 4,485,553 4,775,182 Transfers From Operating/Capital 1,800,477 1,800,477 1,886,214 1,923,900 1,962,400 2,001,700 2,041,700 2,082,500 2,124,200 2,166,700 2,210,034 2,468,324 2,517,691 2,568,044 2,619,405 2,671,793 2,725,229 2,779,734 2,835,329 2,892,035 2,949,876 Transfer to Capital - Wastewater 190,377 1,073, ,085 2,185,806 2,103,620 2,095,522 1,898,667 2,770,836 2,222,710 1,308,010 1,996,728 2,448,982 2,475,921 2,503,156 2,530,691 2,558,529 2,586,672 2,615,126 2,643,892 2,672,975 2,702,378 Transfer to Capital - Water - 863,000 2,286, Transfer to Operating Interest Earned 44,094 59,397 43,921 40,651 39,142 38,322 41,043 31,333 30,325 43,661 47,515 48,518 49,872 51,594 53,698 56,203 59,124 62,480 66,289 70,569 75,340 Closing Balance 4,095,486 4,019,193 2,971,967 2,750,712 2,648,635 2,593,135 2,777,210 2,120,207 2,052,023 2,954,374 3,215,194 3,283,054 3,374,696 3,491,178 3,633,591 3,803,058 4,000,739 4,227,828 4,485,553 4,775,182 5,098, Actuals Debt Reduction Reserve Fund (Wastewater) Opening Balance 13,091,852 19,061,664 22,695,182 13,360,969 4,830,854 3,744, ,536 6,756,934 12,437,278 17,187,827 20,994,635 24,858,544 28,780,413 32,761,109 36,801,516 40,902,529 45,065,057 49,290,023 53,578,363 57,931,029 62,348,984 Transfers From Operating/Capital 4,805,199 5,157,817 5,126,785 4,922,259 5,016,590 5,027,656 4,242,526 3,242,526 2,242,526 1,242,526 1,242,526 1,242,526 1,387,479 1,532,900 2,373,022 2,852,512 3,496,542 3,496,542 3,496,542 3,496,542 3,496,542 Debt Repayments 936, ,374 1,130,496 1,609,986 2,254,016 2,254,016 2,254,016 2,254,016 2,254,016 2,254,016 2,109,063 1,963,642 1,123, , Transfer to Capital - Wastewater - 1,175,696 1,179,500 6,814,140 3,889,095 5,223, Transfer to Other 684,000 13,478,950 7,000,000 3,400,000 5,000,000 Transfer to Operating Interest Earned 227, , ,453 71,392 55,333 2,372 99, , , , , , , , , , , , , , ,683 Closing Balance 19,061,664 22,695,182 13,360,969 4,830,854 3,744, ,536 6,756,934 12,437,278 17,187,827 20,994,635 24,858,544 28,780,413 32,761,109 36,801,516 40,902,529 45,065,057 49,290,023 53,578,363 57,931,029 62,348,984 66,833, Actuals Environment Reserve Funds (Wastewater) Opening Balance 6,613,934 9,034,089 10,279,509 8,323,410 3,665,713 1,426,210 2,287,879 3,668,181 5,633,360 7,094,101 9,565,841 12,069,475 12,705,247 13,006,616 13,279,760 13,484,161 13,616,380 13,672,847 13,649,863 13,543,590 13,350,051 Transfers From Operating/Capital 2,500,000 2,888,662 2,901,992 2,915,522 2,929,255 2,943,194 2,957,342 2,971,702 2,986,277 3,001,071 3,016,087 3,031,329 3,046,799 3,062,501 3,078,438 3,094,615 3,111,034 3,127,700 3,144,615 3,161,784 3,179,211 Transfer to Capital - Wastewater 176, ,200 3,852,576 5,315,795 3,381, , , , , , , , , , , , ,335 Transfer to Other - Hauled Sewage 19, ,956 1,128,521 1,940,734 1,748,125 1,573,551 1,441,047 1,002,672 1,384, , ,819 1,881,313 2,078,635 2,123,406 2,188,697 2,255,966 2,325,272 2,396,676 2,470,243 2,546,036 2,624,124 Transfer to Other - DC Shortfall ,864 60, , ,203 87, , , , , , , , , , , ,758 Interest Earned 115, , ,006 54,173 21,077 33,811 54,210 83, , , , , , , , , , , , , ,081 Closing Balance 9,034,089 10,279,509 8,323,410 3,665,713 1,426,210 2,287,879 3,668,181 5,633,360 7,094,101 9,565,841 12,069,475 12,705,247 13,006,616 13,279,760 13,484,161 13,616,380 13,672,847 13,649,863 13,543,590 13,350,051 13,065,126 Capital Reserve/Reserve Funds 2016 Actuals (Wastewater) Opening Balance 6,456,862 7,328,915 2,192,592 4,014,387 1,398, , ,505 5,631,984 12,669,845 19,706,797 26,609,548 35,392,702 40,001,553 48,433,242 57,919,648 69,212,947 82,007,424 96,526, ,179, ,018, ,101,429 Transfers From Operating/Capital 3,486,097 4,986,360 5,679,568 6,409,081 6,998,511 7,530,654 7,906,385 8,576,034 9,271,155 10,033,217 10,932,687 9,522,514 13,287,538 14,270,545 15,980,762 17,364,865 18,948,896 19,926,528 20,942,304 21,998,213 23,095,563 Transfer to Capital 2,702,424 10,155,085 3,917,099 9,045,315 8,136,748 7,275,442 2,885,137 1,725,412 2,525,436 3,523,711 2,672,577 5,504,819 5,571,611 5,640,094 5,710,314 5,782,321 5,856,163 5,931,893 6,009,563 6,089,229 6,170,946 Transfer to Operating 25, Interest Earned 113,480 32,403 59,326 20,672 3,909 7,796 83, , , , , , , ,955 1,022,851 1,211,932 1,426,502 1,657,819 1,906,678 2,173,913 2,460,391 Closing Balance 7,328,915 2,192,592 4,014,387 1,398, , ,505 5,631,984 12,669,845 19,706,797 26,609,548 35,392,702 40,001,553 48,433,242 57,919,648 69,212,947 82,007,424 96,526, ,179, ,018, ,101, ,486,436 Note: Closing reserve fund balance as a percentage of capital asset balance 1.23% 0.36% 0.63% 0.21% 0.04% 0.08% 0.79% 1.73% 2.61% 3.42% 4.41% 4.84% 5.69% 6.61% 7.67% 8.82% 10.08% 11.37% 12.70% 14.06% 15.45% Table G-4B Wastewater Operating Budget Summary Actual Actual Budget Description Net Expenditures Operating Expenditures 5,069,727 5,835,968 5,825,037 5,912,400 6,001,100 6,091,100 6,182,500 6,275,200 6,369,300 6,464,800 6,561,800 6,660,200 6,760,100 6,861,500 6,964,400 7,068,900 7,174,900 7,282,500 7,391,700 7,502,600 7,615,100 7,729,300 7,845,200 Net Internal Charges 1,342, , , , , , , , ,700 1,004,500 1,019,600 1,034,900 1,050,400 1,066,200 1,082,200 1,098,400 1,114,900 1,131,600 1,148,600 1,165,800 1,183,300 1,201,000 1,219,000 Other Revenue (542,431) (452,047) (366,580) (372,100) (377,700) (383,400) (389,100) (394,900) (400,900) (406,900) (413,000) (419,200) (425,500) (431,900) (438,400) (445,000) (451,600) (458,400) (465,300) (472,300) (479,300) (486,500) (493,800) Net Expenditures due to Level of Service Adjustments Transfer to Capital Transfers to Reserve Funds Transfers to Current Reserve Funds (Capital Related) 2,431,251 2,188,620 3,486, Transfer to Wastewater Capital Reserve Fund(s) ,986,360 5,679,568 6,409,081 6,998,511 7,530,654 7,906,385 8,576,034 9,271,155 10,033,217 10,932,687 9,522,514 13,287,538 14,270,545 15,980,762 17,364,865 18,948,896 19,926,528 20,942,304 21,998,213 23,095,563 Debenture Payments Existing Debt 5,297,965 5,528,902 4,502,560 3,794,582 3,773,918 3,769,944 3,267,908 3,244,036 2,440,085 2,412,782 2,386,237 2,320,225 2,145,265 4,309,431 1,474,102 1,453,120 1,432,642 1,412,165 1,391,968 1,371,209 1,350,732 1,330,254 1,309,833 New Debt - Growth Related Internal Debt , ,374 1,130,496 1,609,986 2,254,016 2,254,016 2,254,016 2,254,016 2,254,016 2,254,016 2,109,063 1,963,642 1,123, , New Debt - Non-Growth Related , , , , , , , , , , , , , , ,213 Transfer from Reserve Fund: Development Charges (Debt) Surplus/(Deficit) Adjustment Wastewater Service Revenue (User Fees and Levy) 13,598,922 13,970,094 14,377,304 15,239,942 16,154,339 17,123,599 18,151,015 19,240,076 19,959,799 20,706,445 21,481,020 22,284,571 23,118,181 23,982,974 24,880,116 25,810,819 26,776,337 27,777,972 28,817,076 29,895,050 31,013,349 32,173,480 33,377,009 Percentage Increase 6.00% 6.00% 6.00% 6.00% 6.00% 3.74% 3.74% 3.74% 3.74% 3.74% 3.74% 3.74% 3.74% 3.74% 3.74% 3.74% 3.74% 3.74% 3.74% 3.74% Annual Infrastructure Funding Gap Analysis (Inflated) Wastewater - Phased-In Approach $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ Current Capital with Inflation Optimal Funding - Phase in Optimal Funding

103 APPENDIX H SOLID WASTE MANAGEMENT ASSET MANAGEMENT STRATEGY & FINANCING STRATEGY

104 Description Actual Actual Budget District of Muskoka 2016 Asset Management Plan Financing Strategy - Scenario 1 Table H-1A Solid Waste Capital Prior Capital Expenses Solid Waste 2,624, ,799 2,250, Capital - AMP New Capital 1,301, ,560 1,979, ,673 2,764, ,297 1,975,935-2,197,989-1,009,982 1,021,092 1,032,324 1,043,679 1,055,160 1,066,767 1,078,501 1,090,365 1,102,359 1,114,485 Replace/Upgrade - AMP - - 4,072, ,237 2,939, ,295,971-2,902, , , ,330 Rehabilitation and Renewal 400,000 1,346, , , , ,736 1,406, , , , , , , , , , ,491 R&M/Studies 418,000 75, Subtotal Capital 2,119,900 2,200,340 7,025,503 1,198,592 6,351, ,297 2,596,671 2,702,674 2,197,989 2,902,964 1,970,230 1,361,452 1,376,428 1,391,569 1,843,591 1,422,352 1,437,998 1,453,816 1,469,807 2,142,306 Level of Service Adjustments Rehabiliation and Renewal Works Total Expenditures 2,624, ,799 2,250,000 2,119,900 2,200,340 7,025,503 1,198,592 6,351, ,297 2,596,671 2,702,674 2,197,989 2,902,964 1,970,230 1,361,452 1,376,428 1,391,569 1,843,591 1,422,352 1,437,998 1,453,816 1,469,807 2,142,306 Capital Financing Provincial/Federal Grants 107,564 58,806 Non-Growth Related Debentures Internal Debt Growth Related Debentures Reserve Fund: Development Charges Reserve Fund: Gas Tax Reserve/Reserve Fund: Other 2,517, ,058 2,250,000 Other (Area Municipal Contributions) Other (Local Improvements) - Transfer from Operating Reserve Fund: New Capital 2,119,900 2,200,340 7,025,503 1,198,592 6,351, ,297 2,596,671 2,702,674 2,197,989 2,902,964 1,970,230 1,361,452 1,376,428 1,391,569 1,843,591 1,422,352 1,437,998 1,453,816 1,469,807 2,142,306 H-1 Total Capital Financing 2,624, ,863 2,250,000 2,119,900 2,200,340 7,025,503 1,198,592 6,351, ,297 2,596,671 2,702,674 2,197,989 2,902,964 1,970,230 1,361,452 1,376,428 1,391,569 1,843,591 1,422,352 1,437,998 1,453,816 1,469,807 2,142,306 Total Capital Expenses less Capital Financing Table H-2A Reserve and Reserve Fund Continuity Schedules Actual 2016 Solid Waste (Operating) Opening Balance 828, , , , , , , , , , , , ,294 1,005,149 1,020,226 1,035,529 1,051,062 1,066,828 1,082,831 1,099,073 1,115,559 Transfers From Operating/Capital Transfer to Capital - Solid Waste Transfer to Other Transfer to Other Interest Earned 12,459 12,610 12,800 12,992 13,186 13,384 13,585 13,789 13,996 14,206 14,419 14,635 14,854 15,077 15,303 15,533 15,766 16,002 16,242 16,486 16,733 Closing Balance 840, , , , , , , , , , , ,294 1,005,149 1,020,226 1,035,529 1,051,062 1,066,828 1,082,831 1,099,073 1,115,559 1,132,293 Capital Reserve/Reserve Funds Actual 2016 (Solid Waste) Opening Balance 4,325,315 2,533,084 3,442,553 4,445, ,996 3,049, ,669 3,988,005 5,223,674 6,427,549 8,219,840 9,382,361 11,568,787 14,466,667 17,454,424 20,534,158 23,264,694 26,528,191 29,890,104 33,352,695 36,918,421 Transfers From Operating/Capital 3,386,598 2,978,494 3,137,404 3,301,370 3,470,566 3,644,970 3,699,697 3,755,143 3,811,561 3,868,805 3,926,829 3,985,688 4,045,539 4,106,238 4,167,843 4,230,313 4,293,807 4,358,185 4,423,509 4,489,941 4,557,344 Transfer to Capital 5,240,285 2,119,900 2,200,340 7,025,503 1,198,592 6,351, ,297 2,596,671 2,702,674 2,197,989 2,902,964 1,970,230 1,361,452 1,376,428 1,391,569 1,843,591 1,422,352 1,437,998 1,453,816 1,469,807 2,142,306 Transfer to Other Transfer to Operating Interest Earned 61,457 50,875 65,694 10,818 45,060 5,138 58,936 77,197 94, , , , , , , , , , , , ,002 Closing Balance 2,533,084 3,442,553 4,445, ,996 3,049, ,669 3,988,005 5,223,674 6,427,549 8,219,840 9,382,361 11,568,787 14,466,667 17,454,424 20,534,158 23,264,694 26,528,191 29,890,104 33,352,695 36,918,421 39,923,461 Note: Closing reserve fund balance as a percentage of capital asset balance 7.45% 10.24% 13.37% 2.23% 9.37% 1.08% 12.53% 16.59% 20.64% 26.68% 30.79% 38.38% 48.53% 59.19% 70.40% 80.64% 92.96% % % % % Table H-3A Solid Waste Operating Budget Summary Actual Actual Budget Description Net Expenditures Operating Expenditures 11,478,364 11,811,813 10,879,661 11,042,900 11,208,500 11,376,600 11,547,200 11,720,400 11,896,200 12,074,600 12,255,700 12,439,500 12,626,100 12,815,500 13,007,700 13,202,800 13,400,800 13,601,800 13,805,800 14,012,900 14,223,100 14,436,400 14,652,900 Net Internal Charges 1,612,950 1,351,950 1,442,530 1,464,200 1,486,200 1,508,500 1,531,100 1,554,100 1,577,400 1,601,100 1,625,100 1,649,500 1,674,200 1,699,300 1,724,800 1,750,700 1,777,000 1,803,700 1,830,800 1,858,300 1,886,200 1,914,500 1,943,200 Other Revenue (1,213,170) (1,280,345) (1,186,100) (1,203,900) (1,221,900) (1,240,200) (1,258,800) (1,277,700) (1,296,900) (1,316,300) (1,336,100) (1,356,200) (1,376,500) (1,397,100) (1,418,100) (1,439,400) (1,461,000) (1,482,900) (1,505,200) (1,527,800) (1,550,700) (1,574,000) (1,597,600) Net Expenditures due to Level of Service Adjustments Transfer to Capital Transfers to Reserve Funds Transfer to Obligatory Reserve/Reserve Funds Transfer to Other Reserve/Reserve Funds Transfers to Current Reserve Funds (Capital Related) 1,718,924 1,963,660 2,580, Transfer to Solid Waste Capital Reserve Fund(s) ,978,494 3,137,404 3,301,370 3,470,566 3,644,970 3,699,697 3,755,143 3,811,561 3,868,805 3,926,829 3,985,688 4,045,539 4,106,238 4,167,843 4,230,313 4,293,807 4,358,185 4,423,509 4,489,941 4,557,344 Debenture Payments Existing Debt New Debt - Growth Related Internal Debt 236, , , New Debt - Non-Growth Related Transfer from Reserve Fund: Development Charges (Debt) Surplus/(Deficit) Adjustment Solid Waste Revenue (User Fees and Levy) 13,833,250 14,132,914 13,960,571 14,281,694 14,610,204 14,946,270 15,290,066 15,641,770 15,876,397 16,114,543 16,356,261 16,601,605 16,850,629 17,103,388 17,359,939 17,620,338 17,884,643 18,152,913 18,425,207 18,701,585 18,982,109 19,266,841 19,555,844 Percentage Increase 2.30% 2.30% 2.30% 2.30% 2.30% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% $5,000,000 Annual Infrastructure Funding Gap Analysis (Inflated) Waste Management - Calculated Risk $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ Current Capital with Inflation Optimal Funding - Phase in Optimal Funding

105 Description District of Muskoka 2016 Asset Management Plan Financing Strategy - Scenario 2 Table H-1B Solid Waste Capital Actual Actual Budget Prior Capital Expenses Solid Waste 2,624, ,799 2,250, Capital - AMP Phased In New Capital 1,301, ,560 1,979, ,673 2,764, ,297 1,975,935-2,197,989-1,009,982 1,021,092 1,032,324 1,043,679 1,055,160 1,066,767 1,078,501 1,090,365 1,102,359 1,114,485 Replace/Upgrade - AMP 564, , , , , , , , , , , , , , , , , , , ,913 Rehabilitation and Renewal 400,000 1,346, , , , ,736 1,406, , , , , , , , , , ,491 R&M/Studies 418,000 75, Subtotal Capital 2,684,434 2,781,810 3,552,230 1,340,236 4,047, ,746 3,270,754 2,101,009 2,913, ,588 2,105,325 2,142,899 2,181,318 2,220,606 2,260,784 2,301,877 2,343,908 2,386,904 2,430,888 2,475,889 Level of Service Adjustments Rehabiliation and Renewal Works Total Expenditures 2,624, ,799 2,250,000 2,684,434 2,781,810 3,552,230 1,340,236 4,047, ,746 3,270,754 2,101,009 2,913, ,588 2,105,325 2,142,899 2,181,318 2,220,606 2,260,784 2,301,877 2,343,908 2,386,904 2,430,888 2,475,889 Capital Financing Provincial/Federal Grants 107,564 58,806 Non-Growth Related Debentures Internal Debt Growth Related Debentures Reserve Fund: Development Charges Reserve Fund: Gas Tax Reserve/Reserve Fund: Other 2,517, ,058 2,250,000 Other (Area Municipal Contributions) Other (Local Improvements) - Transfer from Operating Reserve Fund: New Capital 2,684,434 2,781,810 3,552,230 1,340,236 4,047, ,746 3,270,754 2,101,009 2,913, ,588 2,105,325 2,142,899 2,181,318 2,220,606 2,260,784 2,301,877 2,343,908 2,386,904 2,430,888 2,475,889 H-2 Total Capital Financing 2,624, ,863 2,250,000 2,684,434 2,781,810 3,552,230 1,340,236 4,047, ,746 3,270,754 2,101,009 2,913, ,588 2,105,325 2,142,899 2,181,318 2,220,606 2,260,784 2,301,877 2,343,908 2,386,904 2,430,888 2,475,889 Total Capital Expenses less Capital Financing Table H2B Reserve and Reserve Fund Continuity Schedules Actual 2016 Solid Waste (Operating) Opening Balance 828, , , , , , , , , , , , ,294 1,005,149 1,020,226 1,035,529 1,051,062 1,066,828 1,082,831 1,099,073 1,115,559 Transfers From Operating/Capital Transfer to Capital - Solid Waste Transfer to Other Transfer to Other Interest Earned 12,459 12,610 12,800 12,992 13,186 13,384 13,585 13,789 13,996 14,206 14,419 14,635 14,854 15,077 15,303 15,533 15,766 16,002 16,242 16,486 16,733 Closing Balance 840, , , , , , , , , , , ,294 1,005,149 1,020,226 1,035,529 1,051,062 1,066,828 1,082,831 1,099,073 1,115,559 1,132,293 Capital Reserve/Reserve Funds Actual 2016 (Solid Waste) Opening Balance 4,325,315 2,533,084 2,784,426 3,013,462 2,538,346 4,377,358 3,573,856 6,161,435 6,333,347 7,778,013 8,504,701 11,537,860 13,315,454 15,171,784 17,109,053 19,129,558 21,235,593 23,429,648 25,714,113 28,091,476 30,564,431 Transfers From Operating/Capital 3,386,598 2,894,626 2,966,313 3,039,601 3,114,559 3,191,058 3,269,270 3,349,069 3,430,729 3,514,126 3,599,237 3,686,140 3,775,015 3,865,744 3,958,408 4,052,992 4,149,681 4,248,362 4,349,122 4,452,152 4,557,343 Transfer to Capital 5,240,285 2,684,434 2,781,810 3,552,230 1,340,236 4,047, ,746 3,270,754 2,101,009 2,913, ,588 2,105,325 2,142,899 2,181,318 2,220,606 2,260,784 2,301,877 2,343,908 2,386,904 2,430,888 2,475,889 Transfer to Other Transfer to Operating Interest Earned 61,457 41,149 44,534 37,512 64,690 52,816 91,056 93, , , , , , , , , , , , , ,688 Closing Balance 2,533,084 2,784,426 3,013,462 2,538,346 4,377,358 3,573,856 6,161,435 6,333,347 7,778,013 8,504,701 11,537,860 13,315,454 15,171,784 17,109,053 19,129,558 21,235,593 23,429,648 25,714,113 28,091,476 30,564,431 33,135,573 Note: Closing reserve fund balance as a percentage of capital asset balance 7.31% 8.28% 9.23% 8.01% 14.23% 11.96% 21.24% 22.49% 28.45% 32.04% 44.77% 53.22% 62.46% 72.55% 83.55% 95.53% % % % % % Table H-3B Solid Waste Operating Budget Summary Actual Actual Budget Description Net Expenditures Operating Expenditures 11,478,364 11,811,813 10,879,661 11,042,900 11,208,500 11,376,600 11,547,200 11,720,400 11,896,200 12,074,600 12,255,700 12,439,500 12,626,100 12,815,500 13,007,700 13,202,800 13,400,800 13,601,800 13,805,800 14,012,900 14,223,100 14,436,400 14,652,900 Net Internal Charges 1,612,950 1,351,950 1,442,530 1,464,200 1,486,200 1,508,500 1,531,100 1,554,100 1,577,400 1,601,100 1,625,100 1,649,500 1,674,200 1,699,300 1,724,800 1,750,700 1,777,000 1,803,700 1,830,800 1,858,300 1,886,200 1,914,500 1,943,200 Other Revenue (1,213,170) (1,280,345) (1,186,100) (1,203,900) (1,221,900) (1,240,200) (1,258,800) (1,277,700) (1,296,900) (1,316,300) (1,336,100) (1,356,200) (1,376,500) (1,397,100) (1,418,100) (1,439,400) (1,461,000) (1,482,900) (1,505,200) (1,527,800) (1,550,700) (1,574,000) (1,597,600) Net Expenditures due to Level of Service Adjustments Transfer to Capital Transfers to Reserve Funds Transfer to Obligatory Reserve/Reserve Funds Transfer to Other Reserve/Reserve Funds Transfers to Current Reserve Funds (Capital Related) 1,718,924 1,963,660 2,580, Transfer to Solid Waste Capital Reserve Fund(s) ,894,626 2,966,313 3,039,601 3,114,559 3,191,058 3,269,270 3,349,069 3,430,729 3,514,126 3,599,237 3,686,140 3,775,015 3,865,744 3,958,408 4,052,992 4,149,681 4,248,362 4,349,122 4,452,152 4,557,343 Debenture Payments Existing Debt New Debt - Growth Related Internal Debt 236, , , New Debt - Non-Growth Related Transfer from Reserve Fund: Development Charges (Debt) Surplus/(Deficit) Adjustment Solid Waste Revenue (User Fees and Levy) 13,833,250 14,132,914 13,960,571 14,197,826 14,439,113 14,684,501 14,934,059 15,187,858 15,445,970 15,708,469 15,975,429 16,246,926 16,523,037 16,803,840 17,089,415 17,379,844 17,675,208 17,975,592 18,281,081 18,591,762 18,907,722 19,229,052 19,555,843 Percentage Increase 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% Annual Infrastructure Funding Gap Analysis (Inflated) Waste Management - Phased-In Approach $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ Current Capital with Inflation Optimal Funding - Phase in Optimal Funding

106 APPENDIX I ASSET SUMMARIES

107 I-1 Administration Facilities Infrastructure 1 Administration Office, 1 POA Court Facility, 3 Paramedic Stations, 1 Public Works Maintenance Building (Cedar Lane) Status Asset inventories have been established using current insurance valuations and comparing to PSAB 3150 historical data to ensure accurateness and completeness. This inventory provides financial account valuations as well as useful life, age, and replacement cost. Condition ratings were provided by staff based on an asset age analysis, which involves estimating an asset's condition based on a comparison of age to remaining useful life. Current State of Assets 10% 3% 0% Very Good Weighted Average Condition Rating = 2 Good 55% 32% Good Fair Poor Very Poor Total Asset Replacement Cost $17,163,777 61% 17% 2016 Asset Replacement Cost 2% 8% 7% 5% District Administration Building POA Court Facility Cedar Lane Huntsville Paramedic Station Gravenhurst Paramedic Station MacTier Paramedic Station Target Levels of Service Level of Service Performance Targets: Strategic (Customer) Tactical (Asset) Core Business Process Service Facilities Customer Levels of Service - Facilities provide a safe, healthy environment for staff and the public - Facilities are accessible as required - Affordable Service Type Asset Levels of Service Structures Condition - Maintain structural assets to a minimum condition of 3 = Fair Site Improvements Condition - Maintain building site and property in a state of good repair Equipment Condition - Maintain equipment at a minimum condition rating of 3 = Fair Performance - Ensure back up capacity for all critical equipment Performance - Secondary electrical supply and standby power for all critical process and life safety assets

108 I-2 Risk Profile Risk of Failure E H M L Priorities Based on Asset Risk Location Risk Description Action District Administration Building H Common Area Flooring Short Term Capital H Boilers Short Term Capital H Roof Top Units Short Term Capital H Telephone UPS Short Term Capital H Council Chambers Chairs Short Term Capital H Oak Room Furniture Short Term Capital H Meeting Room Furniture Short Term Capital Cedar Lane H Roofing Short Term Capital MacTier Paramedic Station H Roofing Short Term Capital 20 Year Capital Reinvestment Outlook $1,000,000 $800,000 $600,000 $400,000 $200,000 $- Capital Replacement Expansion Projects

109 I-3 Community Housing Facilities Infrastructure 1 Seniors Housing Facility, 11 Social Housing Facilities Status Asset inventories have been established using current insurance valuations and comparing to PSAB 3150 historical data to ensure accurateness and completeness. This inventory provides financial account valuations as well as useful life, age, and replacement cost. Condition ratings were provided by staff based on an asset age analysis, which involves estimating an asset's condition based on a comparison of age to remaining useful life. Current State of Assets 1% 3% Weighted Average Condition Rating = 3 Fair 57% 36% Very Good Good Fair Poor Very Poor 3% 5% 2% 1% Buildings Total Asset Replacement Cost $39,470,337 92% Equipment Roofing Site Improvements Target Levels of Service Level of Service Performance Targets: Strategic (Customer) Tactical (Asset) Core Business Process Service Facilities Customer Levels of Service - Facilities provide a safe, healthy environment for staff and the public - Facilities are accessible as required - Affordable Service Type Asset Levels of Service Structures Condition - Maintain structural assets to a minimum condition of 3 = Fair Site Improvements Condition - Maintain building site and property in a state of good repair Equipment Condition - Maintain equipment at a minimum condition rating of 3 = Fair Performance - Ensure back up capacity for all critical equipment Performance - Secondary electrical supply and standby power for all critical process and life safety assets

110 I-4 Risk Profile Risk of Failure E H M L Priorities Based on Asset Risk Location Risk Description Action 22 Aubrey Street E Asphalt Short Term Capital H Common Area Flooring Short Term Capital 124 Alice Street E Asphalt Short Term Capital E Windows and Doors Short Term Capital H Common Area Flooring Short Term Capital H Common Area MUA Unit Short Term Capital 3 & 5 Wellington Court E Asphalt Short Term Capital 845 Bethune Drive E Asphalt Short Term Capital E Windows and Doors Short Term Capital H Common Area Flooring Short Term Capital H Common Area MUA Unit Short Term Capital 865 Bethune Drive E Asphalt Short Term Capital E Windows and Doors Short Term Capital H Common Area Flooring Short Term Capital H Common Area MUA Unit Short Term Capital Pinedale Road H Roofing Short Term Capital 14 Meadow Park Drive E Windows and Doors Short Term Capital H Common Area Flooring Short Term Capital H Common Area MUA Unit Short Term Capital 16 Meadow Park Drive E Roofing Short Term Capital E Windows and Doors Short Term Capital H Common Area Flooring Short Term Capital 18A - 22B Meadow Park Drive E Asphalt Short Term Capital 114 Brunel Road E Asphalt Short Term Capital E Windows and Doors Short Term Capital H Common Area Flooring Short Term Capital H Common Area MUA Unit Short Term Capital 20 Year Capital Reinvestment Outlook Capital Expansion Projects

111 I-5 Long Term Care Home Infrastructure 1 Long Term Care Home Weighted Average Condition Rating = 2 Good Status Asset inventories have been established using current insurance valuations and comparing to PSAB 3150 historical data to ensure accurateness and completeness. This inventory provides financial account valuations as well as useful life, age, and replacement cost. The Long Term Care home was constructed in 2004 and has a good condition rating. Condition ratings were provided by staff based on an asset age analysis, which involves estimating an asset's condition based on a comparison of age to remaining useful life. Current State of Assets 96% 3% 0% 1% 0% Very Good Good Fair Poor Very Poor Total Asset Replacement Cost $21,388, Asset Replacement Cost 2% 2% 0% 96% Building Equipment Roofing Site Improvement Level of Service Performance Targets: Strategic (Customer) Tactical (Asset) Target Levels of Service Core Business Process Service Facilities Customer Levels of Service - Facilities provide a safe, healthy environment fo staff and the public - Facilities are accessible as required - Affordable Service Type Asset Levels of Service Structures Condition - Maintain structural assets to a minimum condition of 3 = Fair Site Improvements Condition - Maintain building site and property in a state of good repair Equipment Condition - Maintain equipment at a minimum condition rating of 3 = Fair Performance - Ensure back up capacity for all critical equipment Performance - Secondary electrical supply and standby power for all critical process and life safety assets

112 I-6 Risk Profile Risk of Failure $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 E H M L Priorities Based on Asset Risk Long Term Care Home Risk Description Action Building Envelope E Power Door Operator Replacement Short Term Capital HVAC E Boiler Replacement Short Term Capital Mechanical E Plumbing Fixture Replacement Short Term Capital HVAC E RTU Replacement Short Term Capital 20 Year Capital Reinvestment Outlook

113 I-7 Fleet and Computer Equipment Infrastructure 107 Fleet Vehicles and Equipment, 334 Computers Status Asset inventories have been established using PSAB 3150 historical data and asset listings provided by staff. This inventory provides financial account valuations as well as useful life, age, and replacement cost. Condition ratings were provided by staff based on equipment usage and an asset age analysis, which involves estimating an asset's condition based on a comparison of age to remaining useful life. Current State of Assets Weighted Average Condition Rating = 3 Fair 15% 26% 12% 7% 40% Very Good Good Fair Poor Very Poor 2016 Asset Replacement Cost Total Asset Replacement Cost $7,137,498 $6,754,098 95% $383,400 5% Fleet Computers Level of Service Performance Targets: Strategic (Customer) Tactical (Asset) Target Levels of Service Core Business Process Service Fleet and Equipment Computers Customer Levels of Service - Fleet vehicles and equipment are safe and well maintained - Fleet quality and availability fully meet the needs of the different program services - Affordable - Computers fully meet the needs of the departments - Affordable Service Type Asset Levels of Service Fleet and Equipment Condition - Maintain equipment at a minimum condition rating of 3 = Fair and a moderate risk of failure Performance - Ensure back up capacity for all critical equipment Computers Condition - Maintain equipment at a minimum condition rating of 3 = Fair and a moderate risk of failure Performance - Ensure back up capacity for all critical equipment

114 I-8 Risk Profile Computers Fleet E H M L Priorities Based on Asset Risk Unit Number Risk Description Action 1311 E Ford F150 Short Term Capital 2208 E Ford F550 (w Crane Boom & Utility Box) Short Term Capital 6007 E KOBELCO EXCAVATOR ED150 Short Term Capital 6015 E John Deere 744K Loader Short Term Capital 6911 E KOMATSU WB140-2N Short Term Capital 7911 E Trailer Short Term Capital 1025 H Ford F150 Supercab 4x4 Short Term Capital 1026 H Ford F150 (w Lift Gate) Short Term Capital 1040 H Chev Silverado Ext Cab 4X4 Short Term Capital 1041 H Chev Silverado Ext Cab 4X4 Short Term Capital 1310 H Ford F150 Short Term Capital 2000 H Ford F550 utility box w Crane Boom ( engine 2013) Short Term Capital 2031 H Ford F-250 Crew Cab 4X4 (ESP) (w Plow Sand LG) Short Term Capital 6003 H NEW HOLLAND BACKHOE Short Term Capital 6006 H LANDINI TRACTOR & WINDROW TURN Short Term Capital 6008 H TEREX Short Term Capital 6010 H Caterpillar 924G Short Term Capital 6011 H John Deer 724K Short Term Capital 6912 H Peterbilt Tandem 340 (w Plow) Dump Box Short Term Capital 6913 H Peterbilt Tandem 340 Dump Box Short Term Capital 20 Year Capital Reinvestment Outlook

115 I-9 Muskoka Paramedic Services Infrastructure 13 Ambulances, 2 Supervisor Vehicles, 1 Trailer, 15 GPRS AVL Communication Equipment, 18 Tablets with imedic software, 15 Defibrilators, 10 Difibrilator Holders, 28 other equipment assets Status Asset inventories have been established using PSAB 3150 historical data as a starting point. This inventory provides current financial account valuations as well as useful life, age, and replacement cost. Condition ratings were provided by staff based on an asset age analysis, which involves estimating an asset's condition based on a comparison of age to remaining useful life. Current State of Assets 0% 23% 0% Very Good Weighted Average Condition Rating = 3 Fair 49% 28% Good Fair Poor Very Poor 2016 Asset Replacement Cost Total Asset Replacement Cost $2,968,057 1,897,185 64% Fleet Equipment 1,070,872 36% Level of Service Performance Targets: Strategic (Customer) Tactical (Asset) Target Levels of Service Core Business Process Service Paramedic Services Customer Levels of Service - Fast and safe response and possible transport to hospital - Pre-hospital emergency care at the minimum standard of the Ambulance Act - 24/7 functionality for an emergency service - Properly equipped EMS vehicles Service Type Asset Levels of Service Emergency Response Vehicles Condition - Maintain vehicles at a condition rating of Fair to Good and risk of failure is Moderate to Low. Replace when equipment reaches its estimated service life. Medical Equipment Condition - Maintain equipment at a condition rating of Fair to Good and risk of failure is Moderate to Low. Replace when equipment reaches its estimated service life. Equipment Condition - Maintain equipment at a minimum condition rating of 3 = Fair Performance - Ensure back up capacity for all critical equipment Performance - Secondary electrical supply and standby power for all critical process and life safety assets

116 I-10 Risk Profile Equipment Fleet E H M L Priorities Based on Asset Risk Vehicle/Equipment Risk Description Action Ford CTV E Ambulance Short Term Capital Ford E350 CTV E Ambulance Short Term Capital Ford Explorer XLT H Supervisor SUV Short Term Capital Ford Explorer XLT H Supervisor SUV Short Term Capital Tablets H 18 Panasonic Toughbook Tablets Short Term Capital Tablet Software H imedic software Short Term Capital Difibrillator Holders E Lifepak Short Term Capital Difibrillators E Allied Rack System Short Term Capital 20 Year Capital Reinvestment Outlook

117 I-11 Roads, Bridges and Major Culverts Infrastructure 1,477 km Paved Road network, 51 Bridge Assets, 39 Major Culverts Status Asset inventories have been established using the Roads Needs study and OSIM Bridge and Major Culvert Condition reports. This inventory has been compared to PSAB 3150 data to ensure completeness and provides current financial account valuations as well as useful life, age, and replacement cost. Current State of Assets 27% 16% 9% 48% Good Fair Poor Very Poor 2016 Asset Replacement Cost 50% 10% 4% 2% 34% Road Base Road Surface Bridges - Structure Bridges - Deck Major Culverts Level of Service Performance Targets: Strategic (Customer) Tactical (Asset) Target Levels of Service Core Business Process Service Roads Infrastructure Customer Levels of Service Meet or exceed "Minimum Maintenance Standards" (MMS) as defined by Ontario Regulation 239/02. Track and resolve issues and requests for service and minimize complaints. Roads Infrastructure Bridges and Culverts Asset Levels of Service Proactive maintenance and planned Capital programs based on Road Needs Study (RNS); each road updated every 2 years Provide timely maintenance and winter control activities to meet MMS requirements Undertake preventative maintenance to maintain condition rating of roads and ensure public safety Maintain functionality of drainage structures Road inspections determine pothole patching and surface discontinuity needs. Maintain public safety by ensuring guiderail meets engineering and design standards Maintain strutural adequacy and condition. Preventative bridge deck and super structure maintenance. Inspections (using OSIM guidelines) required every 2 years as per Provincial Legislation to ensure safety and Capital planning.

118 I-12 Risk Profile Priorities Based on Asset Risk Location Description Action Risk Muskoka Road 118 (Eccelstone Drive) CNR Underpass 1.40 km N of Highway 11 Short Term Capital H Muskoka Road 14 (Fraserburg Road) Kawpakwakog Twin Culverts 0.09 km N Lorne Road Short Term Capital H Muskoka Road 19 (Beiers Road) South Beaver Creek Twin Culverts 1.52 km W Highway 11 Short Term Capital H MUSKOKA ROAD 42 FRONT STREET PINE STREET Short Term Capital E MUSKOKA ROAD 2 LANDFILL ENT. 3.2km N. OF MUSK. RD. 117 Short Term Capital H MUSKOKA ROAD 2 4.5km N. OF MUSK. RD. 117 MUSKOKA ROAD 9 Short Term Capital H MUSKOKA ROAD 2 MUSK. RD 3 (KING WILLIAM ST.) SHAY ROAD Short Term Capital H MUSKOKA ROAD 2 SILVER STREET HIGHWAY 11 Short Term Capital H MUSKOKA ROAD 3 MUSKOKA ROAD 2 (CHAFFEY ST.) MUSKOKA ROAD 2 (BRUNEL RD.) Short Term Capital H MUSKOKA ROAD 3 MUSKOKA ROAD 2 (BRUNEL RD.) LORNE STREET Short Term Capital H MUSKOKA ROAD 4 MUSK. RD. 118(WELLINGTON ST.) MUSK. RD. 37(MANITOBA ST.) Short Term Capital H MUSKOKA ROAD 7 MUSKOKA ROAD 118 PORT SANDFIELD BRIDGE Short Term Capital H MUSKOKA ROAD 15 BEAVER CREEK BRIDGE LESLIE DRIVE Short Term Capital H MUSKOKA ROAD 16 MUSK. RD. 37 (MANITOBA ST.) MUSK. RD. 118 (WELLINGTON ST.) Short Term Capital H MUSKOKA ROAD 16 MUSK. RD. 118 (WELLINGTON ST.) ENTRANCE TO TCP PLANT Short Term Capital H MUSKOKA ROAD 16 ENTRANCE TO TCP PLANT STEPHENS BAY ROAD Short Term Capital H MUSKOKA ROAD 30 MUSKOKA ROAD 169 WALKERS POINT ROAD Short Term Capital H MUSKOKA ROAD 37 MUSKOKA ROAD 16 MUSK. RD. 42 (TAYLOR RD.) Short Term Capital H MUSKOKA ROAD 37 MUSK. RD. 42 (TAYLOR RD.) MUSK. RD. 4 (MONCK ROAD) Short Term Capital H MUSKOKA ROAD 42 MUSK. RD. 37 (MANITOBA ST.) FRONT STREET Short Term Capital H MUSKOKA ROAD 117 HIGHWAY 35 PAINT LAKE CREEK BRIDGE Short Term Capital H MUSKOKA ROAD 118 MUSKOKA ROAD 4 WEST MALL DRIVE Short Term Capital H MUSKOKA ROAD 169 MUSKOKA ROAD 18 WANDA MILLER ROAD Short Term Capital H $60,000, Year Capital Reinvestment Outlook $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- Now Needs 1-5 Years 6-10 Years Years Road Base Road Surface Bridges - Structure Bridges - Deck Major Culverts

119 I-13 Port Carling Locks Infrastructure Port Carling Locks Assets tracked include Structures, Docks, Locks, Site Improvements and Equipment Status Asset inventories have been established using PSAB 3150 historical data as a starting point. This inventory provides current financial account valuations as well as useful life, age, and replacement cost. Condition ratings were derived from a combination of data provided by staff and an asset age analysis, which involves estimating an asset's condition based on a comparison of age to remaining useful life. Current State of Assets Weighted Average Condition Rating = 3 Fair 27% 40% 10% 5% 18% Very Good Good Fair Poor Very Poor 2016 Asset Replacement Cost Total Asset Replacement Cost $6,281,740 83% 11% 6% Structures Equipment Site Improvements Level of Service Performance Targets: Strategic (Customer) Tactical (Asset) Target Levels of Service Core Business Process Service Port Carling Locks Customer Levels of Service - Operate and maintain safe, effective and efficient operations - Meet or exceed all regulatory operational, monitoring and reporting requirements - Facilities provide a safe, healthy environment for staff and the public - Facilities are accessible as required - Affordable Service Type Asset Levels of Service Structures Condition - Maintain facilities in a state of good repair Site Improvements Condition - Maintain building sites and property in a state of good repair Equipment Condition - Maintain equipment at a minimum condition rating of 3 = Fair Performance - Ensure back up capacity for all critical equipment Performance - Secondary electrical supply and standby power for all critical process and life safety assets

120 I-14 Risk Profile Risk of Failure E H M L Priorities Based on Asset Risk Port Carling Locks Risk Description Action Structures E Docks - Large Lock Short-term capital Structures H Shelter Equipment E Electrical - Overhead lighting Short-term capital Short-term capital 20 Year Capital Reinvestment Outlook

121 I-15 Airport Infrastructure 1 Airport Building, 6 Other Structures, 1 Grass Runway, 2 Asphalt Runways, 2 Public Aprons, 8 Taxiways, Visual Aids, 2 Fuel Tanks, Field Equipment, Storm Water System, Site Improvements Status Asset inventories have been provided by staff and compared to PSAB 3150 historical data to ensure acurateness and completeness. This inventory provides financial account valuations as well as useful life, age, and replacement cost. Condition ratings were provided by staff based on an asset age analysis, which involves estimating an asset's condition based on a comparison of age to remaining useful life. Current State of Assets Weighted Average Condition Rating = 3 Fair 20% 25% 16% 0% 39% Very Good Good Fair Poor Very Poor 2016 Asset Replacement Cost 7% Total Asset Replacement Cost $19,953,111 50% 7% 9% 27% Runways Site Improvements Storm System Field Equipment Buildings Level of Service Performance Targets: Strategic (Customer) Tactical (Asset) Target Levels of Service Core Business Process Service Airport Infrastructure Customer Levels of Service - Provide a safe, efficient and effective airport operation and deliver excellent client service - Ensure the aviation fuel facility is operated safely and efficiently to maximize revenue - Meet all regulations to ensure the airport maintains its Transport Canada certification. - Facilities provide a safe, healthy environment for staff and the public - Facilities are accessible as required - Runways are safe and accessible year round and during all weather conditions - Runways are designed and operated in an envirnomentally sustainable manner

122 I-16 Service Type Asset Levels of Service Structures Condition - Maintain structural assets to a minimum condition of 3 = Fair Runways Condition - Runways are maintained in a state of good repair at the lowest practical costs Site Improvements Condition - Maintain building site and property in a state of good repair Field Equipment Condition - Maintain equipment at a minimum condition rating of 3 = Fair Performance - Ensure back up capacity for all critical equipment Performance - Secondary electrical supply and standby power for all critical process and life safety assets Risk Profile Risk of Failure $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 E H M L Priorities Based on Asset Risk Location Risk Description Action Grass H Runway 09/27 (secondary runway) Short Term Capital Asphalt H Runway 18/36 Turn-around Areas (north & south) Short Term Capital Asphalt H Public Apron (original south portion) Short Term Capital Asphalt H Taxiway Charlie (Parallel - southern portion) Short Term Capital Asphalt H Secondary Connections to Taxiways (connecting 11 tenants) Short Term Capital Site Improvements H Terminal Parking Lot Short Term Capital Visual Aids H Rotating Light Beacon and Tower Short Term Capital Buildings H Impact Café Building (being managed by Community Services) Short Term Capital 20 Year Capital Reinvestment Outlook $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 Capital Expansion Projects $1,000,000 $-

123 I-17 Hauled Sewage Infrastructure 9 Lagoons Assets tracked include Site Improvements and Equipment Status Asset inventories have been established using PSAB 3150 historical data as a starting point. This inventory provides current financial account valuations as well as useful life, age, and replacement cost. Condition ratings were derived from a combination of data provided by staff and an asset age analysis, which involves estimating an asset's condition based on a comparison of age to remaining useful life. Current State of Assets Weighted Average Condition Rating = 3 Fair 28% 15% 12% 41% 4% Very Good Good Fair Poor Very Poor Total Asset Replacement Cost $10,589,112 $9,258,832 87% 2016 Asset Replacement Cost Site Improvement Equipment $1,330,280 13% Level of Service Performance Targets: Strategic (Customer) Tactical (Asset) Target Levels of Service Core Business Process Service Septage Haulage Disposal Services Customer Levels of Service - Operate and maintain safe, effective and efficient treatment operations - Meet or exceed all regulatory operational, monitoring and reporting requirements - Facilities provide a safe, healthy environment for staff and the public - Facilities are accessible as required - Affordable Site Improvements - Operate sites within Certificate of Approval parameters, with no impact on site neighbours Service Type Asset Levels of Service Site Improvements Condition - Maintain sites in a state of good repair Performance - Monitor peak wet weather flows to meet operational requirements Performance - Ensure facility operating capacity during dry weather flows does not exceed 90% of total rated capcity Equipment Condition - Maintain equipment at a minimum condition rating of 3 = Fair Performance - Ensure back up capacity for all critical equipment Performance - Secondary electrical supply and standby power for all critical process and life safety assets

124 I-18 Risk Profile Equipment Site Improvement $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 E H M L Lagoon Site Risk Description Action H 1200 mm septage pump stn/chamber Lagoon Lane E 1200 mm concrete inlet structure Short-term capital E 1200 mm concrete inlet structure H Cell 1 P-1100 H Cell 2 R-1180 Watt Short-term capital H Cell 3 R-1470 E 2.1 m x 4.0 m x 0.9 m concrete Ryde E 2.1 m x 4.0 m x 0.9 m concrete trough Short-term capital H Spray disposal pump stn c/w 3 pumps Medora H Spray disposal fields (43,000 SM) c/w 60 spray heads Short-term capital H Cell 1 R-4480 Baxter H Cell 2 P-4275 E Portable pump Short-term capital E Cell 1 R-1160 E Cell 2 R-1060 E Cell 3 P-1720 Stephenson Short-term capital E Cell 4 P-1750 E Perc Pond 220 E Portable pump Franklin E Portable pump H Cell 1 R-1160 H Cell 2 P-1120 Baysville (McLean) H Perc Pond 310 H Aerator windmill E Portable pump Priorities Based on Asset Risk 20 Year Capital Reinvestment Outlook Short-term capital Short-term capital $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 0-5 years 6-10 years years years Site Improvements Equipment

125 I-19 Water Infrastructure 9 Water Treatment Plants, 6 Booster Pump Stations, 6 Elevated Tanks, 3 Reservoirs, 346 kms watermains and appurtenances Status Asset inventories have been provided by the Engineering and Public Works Department. This inventory is a detailed list of all water assets maintained and operated by the District and provides current financial account valuations as well as useful life, age, and replacement cost. Condition ratings were derived from a combination of data provided by staff and an asset age analysis, which involves estimating an asset's condition based on a comparison of age to remaining useful life. Current State of Assets 44% 5% 2% 8% 41% Very Good Good Fair Poor Very Poor 4% 5% 28% Water Treatment Plants Watermains Booster Pump Stations/Reservoirs Water Towers/Elevated Tanks 63% Target Levels of Service Level of Service Performance Targets: Core Business Process Strategic (Customer) Treatment Distribution Tactical (Asset) Service Water Infrastructure Customer Levels of Service - Operate and maintain safe, effective and efficient operations - Meet or exceed all regulatory operational, monitoring and reporting requirements - Facilities provide a safe, healthy environment for staff and the public - Facilities are accessible as required - Affordable - Respond to Customer complaints (quality, pressure)

126 I-20 Service Type Asset Levels of Service Facilities Condition - Maintain facilities in a state of good repair Site Improvements Condition - Maintain building site and property in a state of good repair Equipment Condition Condition Condition Performance Performance - Implement maintenance programs to ensure equipment is at a minimum condition rating of 3 = Fair - Replace and/or rehab aging watermains and water meters - Infrastructure Audits and Capital planning - Ensure back up capacity for all critical equipment - Secondary electrical supply and standby power for all critical process and life safety assets Risk Profile Water Towers/Elevated Tanks BPS/Reservoirs Watermains WTP E H M L 20 Year Capital Reinvestment Outlook $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- 0-5 Years 6-10 Years Years Years Water Treatment Plants Watermains Booster Pump Stns/Reservoirs Water Towers/Elevated Tanks

127 I-21 Wastewater Infrastructure 9 Wastewater Treatment Plants, 72 Sewage Pump Stations, 301 kms wastewatermains and appurtenances Status Asset inventories have been provided by the Engineering and Public Works Department. This inventory is a detailed list of all wastewater assets maintained and operated by the District and provides current financial account valuations as well as useful life, age, and replacement cost. Condition ratings were derived from a combination of data provided by staff and an asset age analysis, which involves estimating an asset's condition based on a comparison of age to remaining useful life. Current State of Assets 5% 5% 11% Very Good Good 19% 60% Fair Poor Very Poor 8% 4% 31% Wastewater Treatment Plants Wastewater mains Sewer Pump Stations 57% Manholes Target Levels of Service Level of Service Performance Targets: Core Business Process Strategic (Customer) Treatment Distribution Tactical (Asset) Service Water Infrastructure Customer Levels of Service - Operate and maintain safe, effective and efficient operations - Meet or exceed all regulatory operational, monitoring and reporting requirements - Facilities provide a safe, healthy environment for staff and the public - Facilities are accessible as required - Affordable - Respond to Customer complaints (sewer backups, flooded basements)

128 I-22 Service Type Asset Levels of Service Facilities Condition - Maintain facilities in a state of good repair Site Improvements Condition - Maintain building site and property in a state of good repair Equipment Condition Condition Condition Performance Performance Performance - Implement maintenance programs to ensure equipment is at a minimum condition rating of 3 = Fair - Replace and/or rehab wastewatermains and laterals - Infrastructure Audits and Capital planning - Ensure back up capacity for all critical equipment - Conduct inflow/infiltration studies - Secondary electrical supply and standby power for all critical process and life safety assets Risk Profile Manholes Wastewater Pump Stations Wastewater Mains Wastewater Plants E H M L 20 Year Capital Reinvestment Outlook $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- 0-5 Years 6-10 Years Years Years Wastewater Plants Wastewater mains Wastewater Pump Stns Manholes

129 I-23 Waste Management Infrastructure 1 active Landfill, 10 Transfer Stations, 3 Depot sites, 91 Bin sites, various structures, bins, equipment, scales and compactors Status Asset inventories have been established using PSAB 3150 historical data as a starting point. This inventory provides current financial account valuations as well as useful life, age, and replacement cost. Condition ratings were derived from a combination of data provided by staff and an asset age analysis, which involves estimating an asset's condition based on a comparison of age to remaining useful life. Current State of Assets Total Asset Replacement Cost $33,624,701 Target Levels of Service Level of Service Performance Targets: Strategic (Customer) Tactical (Asset) Core Business Process Service Septage Haulage Disposal Services Site Improvements Customer Levels of Service - Operate and maintain safe, effective and efficient treatment operations - Meet or exceed all regulatory operational, monitoring and reporting requirements - Facilities provide a safe, healthy environment for staff and the public - Facilities are accessible as required - Affordable - Operate sites within Certificate of Approval parameters, with no impact on site neighbours

130 I-24 Service Type Asset Levels of Service Site Improvements Condition - Maintain sites in a state of good repair Performance - Monitor peak wet weather flows to meet operational requirements Performance - Ensure facility operating capacity during dry weather flows does not exceed 90% of total rated capcity Equipment Condition - Maintain equipment at a minimum condition rating of 3 = Fair Performance - Ensure back up capacity for all critical equipment Performance - Secondary electrical supply and standby power for all critical process and life safety assets Risk Profile Priorities Based on Asset Risk Location Risk Description Action Bracebridge H Scales Bracebridge H Scales Georgian Bay H Scales - Tower Rd Georgian Bay H Scales - Baxter site McLean H Scales - McLean Franklin H Scales - Franklin DMM H Scale software 20 Year Capital Reinvestment Outlook 20 year capital plan - staggered replacements every 2 years